Merchant Payments Ecosystem, February 16-18, Berlin

How PSD2 could improve the payment experience for merchants

Reach, ease of use, conversion and costs of

payments in the context of PSD2

Dennis Van Allemeersch

Merchant Payments Ecosystem, February 16-18, Berlin

Merchant Payments Ecosystem, February 16-18, Berlin

Regulated (SEPA) payment infrastructure has good Reach but poor Conversion

Merchant Payments Ecosystem, February 16-18, Berlin

Electronic Alternative Payments (eAP) services have good Conversion but poor Reach

Merchant Payments Ecosystem, February 16-18, Berlin

Hence, payment infrastructure and services layer need to be linked through open APIs

Merchant Payments Ecosystem, February 16-18, Berlin

However, the Open Bank APIs should be standardized at EU level to avoid fragmentation & accelerate innovation

• Open Transaction Alliance (OTA) > branche-initiative payment experts

• Controlled Access to Payment Services (CAPS) > Equens, Vocalink

• Digital Customer Services Interfaces (DCSI) > Euro Banking Association

Merchant Payments Ecosystem, February 16-18, Berlin

Ecommerce Europe urged ECB to put standardization on ERPB 2016 agenda

Merchant Payments Ecosystem, February 16-18, Berlin

Furthermore, the API Service layer could lead to lower indirect costs for merchants

replaces ageing banking payment (debit) systems => higher reliability

Merchant Payments Ecosystem, February 16-18, Berlin

AS PSPs could lower costs further by reducing fraud through new services

check customer and their financial position

Merchant Payments Ecosystem, February 16-18, Berlin

AS PSPs could also increase check-out conversion through new data propositions

Example: for multi-banked customers - aggregate customer data over several

relations (banks / credit card providers / …)

=> Better credit scoring

Merchant Payments Ecosystem, February 16-18, Berlin

Finally, PISPs will enable merchants with a more customer centric approach

Customer in Control