Why should organisations worry about the implications from the PSD?
Many organizations only worry about the PSD if they believe they are directly impacted from a compliance perspective. Clearly many systems and processes will be impacted, resulting in potential cost increases, additional investments, the selection of new suppliers, the renegotiation of customer contracts or a change of the product features.
However, the strategic implications might be far more important and would have to be considered from the outset, as they may influence the needs and options around compliance. Reversely, some compliance implications may impact the strategic directions of a payment service provider around certain products, new market entry or the provision of new products/services e.g. when becoming an authorized payment institution. Hence EDC suggests keeping a close link and interaction between both views of the PSD.
Finally, there are players who may not be a payment service provider themselves under the PSD (e.g. processors, payment technology vendors). Still, their customers might be payment service providers and are likely to shift part of the compliance burden onto their suppliers. This may also lead to additional service requirements and increased price competition to better help customers comply with and benefit from the PSD.
How can Edgar, Dunn & Company assist clients around the PSD?
EDC has a longstanding global experience of over 30 years around strategic support of organisations in the payments industry, which allows us to provide targeted support to assess the strategic opportunities and threats arising from the PSD for your business. These include looking at potential competitor moves, new market entry (or entry into Europe altogether), product innovation, targeting new customer segments, extension into the payments value chain, becoming an authorized PI/EMI, options for alliances, partnerships, mergers and acquisitions, etc.
On the compliance side, EDC has developed a framework to screen your payment activities across different markets/products/segments and to determine the compliance gaps and required actions. Combined with the detailed knowledge of the country specific aspects of the PSD transposition, this allows us to provide you with an effective plan to become compliant across your payment activities.
To find out more, please contact
erik.vanwinkel@edgardunn.com.
