How Axway turns PSD2 from compliance to acceleration

Axway turns PSD2 from compliance to acceleration by moving a vision of PSD2 (and soon, PSD3) fulfillment to the concept of open banking. Keep in mind that PSD2 covers only the payment part of the bank. Read PSD2 — the electroshock and aftermath for more.

What is PSD2? 

PSD2 is a European regulation for electronic payment services. It aims to make payments conducted in Europe more secure.

In 2007, the Payment Service Providers Directive (PSD) wanted to develop a single payment market in the EU as well as promote innovation, competition, and efficiency. Then, in 2013, it proposed an amendment that would enhance the objectives of PSD and PSD2 was born.

Building on PSD, PSD2 regulates the payment initiation services and account information services. The primary goal is to deliver improved protection for the consumers.

The key points of PSD2 are to:

• Enable a sounder European payment system.
• Encourage an ecosystem of innovative Fintech.
• Give equal guidelines that coexist between Fintech and banks.

In June of 2023, the European Commission published its proposal for PSD3, which expands on these points and aims to bring payment services into the digital age, along with a new Payment Services Regulation (PSR).

Read more about the additions of PSD3 and PSR and learn how they will change financial services in Europe, here.

Differences between open banking and PSD2

While PSD2 is an EU law, Open Banking is the UK’s set of standards for implementing PSD2. Open banking (lowercase), as a concept, is also a secure way to give third-party providers access to financial information via APIs. To further muddy the waters, open banking/Open Banking is commonly used as a term for PSD2 in Europe.

Just the beginning

The introduction of PSD3 follows the general trend of banks embracing the possibilities APIs can provide for better service. However, when customers open up their systems to the open banking model, they can run into problems with governance.

Axway is your vendor of choice

Axway has over 30 years of experience managing the information system and all the moving parts of APIs by meeting the customer’s needs for providing a fast and secure response to regulatory requirements.

Our customers revel in trustworthy products that meet the most stringent level of security certifications, including Common Criteria EAL4+. With Axway’s Amplify Platform, your enterprise has the most effective solution to solve the PSD2 necessity requirement.

One of the big differences with other vendors is that Axway can expose all your assets with real security that is mandatory within a bank. Axway is the only API provider that has the validation of its security process via Common Criteria EAL4+ that works to protect your company and ecosystem.

Client stories

LUXHUB

Axway’s clients utilize the Amplify platform daily. This solution provided LUXHUB with the right answer to solve their multifaceted challenges.

One problem was managing the all-encompassing third-party developer by providing a common portal with a catalog of PSD2 APIs from participating banks.

Amplify’s platform showed the way for an innovative, new open banking marketplace. Amplify enabled numerous banks and Fintech providers to offer all their open APIs on one platform, resulting in an overwhelming success.

With a new open banking system in place, over 800,000 end-customers have used LUXHUB, and there’s more to come. Staying competitive is one reason LUXHUB made Axway its vendor of choice.

Groupe BPCE

Groupe BPCE also had PSD2 compliance issues. They needed to set the groundwork in place to begin the open banking initiative to drive banking services, as well as comply with PSD2.

By accelerating integration, Groupe BPCE pinpointed a secure API platform with Amplify. Groupe BPCE utilizes the API Management solution and now processes over 10 billion API calls a year — a superior outcome.

This provided the much-needed PSD2 compliance and governing obligations that needed to be met. Groupe BPCE is now driving more customer services into the future.

Axway is the strategic vendor your company needs to create the right vision for your future.

Additionally, Axway’s Catalysts, an elite group of API strategists, can provide extensive, sound advice to companies and banking institutions to help them along the way in their Open Everything journey.