PAY.ON, an ACI Worldwide company and a global supplier of white label payment technology, has published in collaboration with First Annapolis a new white paper that explores the implications surrounding - and the opportunities arising from - the revised Payment Services Directive (PSD2) and the Regulation on Multilateral Interchange Fees (MIF).
PSD2 is part of the European Commission’s efforts to strengthen the internal EU market, and has far-reaching implications for card issuers, acquirers, Payment Service Providers and merchants. Access to the account is one area in particular where fast-moving innovators are set to disrupt the status quo, although incumbents also have the opportunity to solidify their position by creating new consumer services.
2-Factor Authentication versus Seamless Payments
Requirements for two-factor authentication will also cause tension, as the industry strives to deliver a more seamless payments experience. Those PSPs, acquirers, and other players that can innovatively combine and balance security with a seamless payment experience stand to gain the most, according to the new paper.
MIF Regulation requires Adaptation
Interchange fee caps will have the largest impact out of those areas covered by the MIF Regulation. Acquirers and Payment Service Providers already benefit from the lower credit and debit rates, but face technical and operational challenges due to new requirements regarding transparency and customer choice.
Issuers, meanwhile, will lose revenue, often significantly. Merchants will benefit from the lower rates, although the trickle down for smaller merchants may take some time. Adaptation, emphasizes the white paper, is required to seize these opportunities.
'All players in the payment chain must adjust'
“As the rules continue to change, disruptors and innovators are positioned to benefit,” claims Markus Rinderer, CEO & Founder of PAY.ON. “MIF Regulation redistributes the economics of the card ecosystem, while PSD2 will motivate innovators and disruptors to enter the market. As the long-term trajectory of the industry shifts, all players in the payment chain must adjust to ensure they are well positioned for the future.”
“The world of payments is changing; traditional participants have to evolve with the new payment ecosystem, whilst new entrants have to adapt to broadening regulation,” adds Daren Wedge, SVP North America and Europe, Networks and Processors for ACI Worldwide. “All payment providers will have to think differently about how they maintain their existing systems. They will need to embrace ‘openness’.”
Download Your Free Copy
The white paper 'Driving change with PSD2 and the MIF Regulation: Creating opportunities in Europe' can be downloaded here.
PAY.ON, an ACI Worldwide company, delivers white label global payment gateway solutions to payment service providers, ISOs, acquirers, enabling them to fully outsource payment transaction processing or integrate a gateway-to-gateway solution.
The core payment gateway provides cross-border payment processing, PCI-compliant merchant boarding, and access to more than 300 domestic and international acquirers and alternative payment methods.
Modular solutions are configured to specific business cases, with additional fraud prevention tools, monitoring and reporting, and business services.
PAY.ON enables payment providers to rapidly increase international revenues, reduce costs and risk, and accelerate market expansion. PAY.ON joined ACI, the Universal Payments company in 2015, creating an even more extensive portfolio of global payment solutions and services.
Sourced from Press Release by PAY.ON, May 9th, 2016