PSD2 introduced two new types of payment services and payment service providers (PSP); namely the payment initiation service provider (PISP) and the account information service provider (AISP).
What are Account Information Service providers?
Under PSD2 an ‘account information service’ (AIS) is an online service which provides consolidated information on payment accounts held by a payment service user with payment service providers. This will ensure that account information service providers (AISPs) can receive access to payment accounts, whilst also placing requirements on them to ensure security for users.
Some of examples of AIS: viewing of multiple bank accounts in one place or giving an access to lenders to view financial information of a customer.
Use cases for AISP: establish account information consent, get list of available accounts, get balances for a given list of accounts, get transaction information for a given account once.
What are Payment Initiation Service providers?
Under PSD2, a ‘payment initiation service’ is an online service which accesses a user’s payment account to initiate the transfer of funds on their behalf with the user’s consent and authentication. Payment initiation services provide an alternative to paying online using a credit card or debit card. The new rules will bring payment initiation services within the scope of regulation. This will ensure that payment initiation service providers (PISPs) receive access to payment accounts, whilst also placing requirements on them to ensure security for users. The user can authorise a PISP to access his payment account with another payment service provider, such as a bank.
Some of examples of PIS: Some savings app can transfer a small proportion of someone’s balance to a savings account or other tools can be integrated with business’ back-office systems to allow companies to securely make or manage payments.
Use cases for PISP: receive a confirmation on the availability of funds; initiation of a single payment.
Licensing of AISP & PISP
If you plan to provide these services, then you must be registered or authorised.
Authorisation of Account Information Service providers (AISP)
In many European countries, a payment institution wishing to provide only account information services can hold a licence of a payment institution providing only account information services. AISPs also fall under the scope of the category payment institutions and can have passporting to other EU countries (for EU-based companies).
For businesses that plan to carry out only account information services in the UK, there is an option to become a registered account information service provider (RAISP).
AISP providers have no capital requirements and need to meet fewer conditions than authorised or licensed firms. AISPs have to hold professional indemnity insurance (PII).
Authorisation of Payment Initiation Service providers (PISP)
If your firm only intends to provide PIS, or PIS as well as other payment services, you must apply to be an authorised payment or e-money institution. In addition, PISPs can also make use of the so-called EU Passport and to provide services in other Member States.
Businesses that provide payment initiation services must have a minimum of €50,000 in initial capital or higher if they plan to provide other payment & e-money services. The same as AISPs, PISPs have to hold professional indemnity insurance (PII).
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