BRUSSELS | MyBank, the pan-European e-payments framework, has plans to provide 'Access to the Account' services. MyBank, enabling online SEPA credit transfers, SEPA direct debits, and e-Mandates, would allow banks and other financial institutions to use its framework to build their own 'Access to the Account' services.
context: what is Access to the Account?
Access to the Account (XS2A) basically entails that financial institutions but also non-financial market players may obtain access to the bank account of European consumers. These businesses would be positioned between the consumer and banks and are referred to as Third Party Payment Service Providers. They would - with consent of the consumer of course - be able to initiate payments on the consumer's behalf. With having access to the account one could develop payment related services (e.g. digital wallets) or identification services. Access to the Account is part of the new Payment Services Directive (PSD2) which is currently in the process of being defined by European regulators.
MyBank as the framework for Access to the Account
MyBank, an EBA Clearing initiative, has already developed the pan-European framework for initiating SEPA Credit Transfers and SEPA Direct Debits. At the same time MyBank provides the basis for obtaining electronic mandates. These e-mandates would replace the paper based 'permission statements' from consumers (or business) that permits businesses to debit the bank account. Based upon that existing framework, which is constructed in compliance with PSD and SEPA regulation, it would also leverage the framework to develop 'Access to the Account' services.
MyBank Access to the Account Interface
The interface will be made available to all banks at no charge, and will enable them to provide a secure, pan-European solution to their customers to make payments through Third Party Payment Service Providers (TPPs). The use of a “redirection protocol” ensures that credentials are not disclosed to any third parties and that consumers can rely on the same user experience repeatedly, with no additional sign-up required. MyBank also intends to make agreements with other mature and working solutions, in order to provide reach to merchants and consumers across Europe. MyBank has seen how both pan-European and national services can co-exist, decreasing complexity and increasing reach.
Article by Erik van den Heuvel, About-Payments, July 1st, 2014