WL Account-Based Payments

PSD2 – New opportunities from Payment Initiation Services

To the surprise of a great many Europeans, who once believed that the EU system was far too bureaucratic to ever take the lead when it comes to innovation, PSD2 has turned out to be more disruptive than anything any bank or merchant would expect from any FinTech start-up.

The purpose of the revised regulation is to promote innovation, competition, and efficiency in the market and to modernize payment services in Europe for the benefit of consumers and businesses alike. It aims in particular to improve transparency, data sharing, and consumers’ rights, as well as to reduce the cost of payment processes.

The new directive introduces the role of the Third Party Provider (TPP) in the banking ecosystem in two categories: Account Information Service (AIS) and Payment Initiation Service (PIS).

Gilles Grapinet, CEO Worldline, about PSD2 “The PSD2 is a game-changing regulation. It’s not just another set of rules in the world of payments. To look at the PSD2 solely from a compliance standpoint would be to grasp only 10% of its full potential.”

Get paid easily by Credit Transfer and Instant Payment with Payment Initiation Services

Get paid via Credit Transfer within the continuity of a consumer journey, without any break between purchase and payment and with no risk of error, with WL Account-Based Payments.

Increase your transformation rate
- The future of payments: Instant Payments are expected to become the most used payment method for internet payments. The PISP (Payment Initiation Service Provider) will help you to accept Instant Payments and Credit Transfers easily and without any break between purchase and payment, allowing a reduction in the number of aborted transactions.
- Universal: In Germany, the Netherlands, and many other European countries, non-card payments are the preferred payment method. Providing PIS and its associated payment methods to these purchasers will help you meet their requirements.
- High spending limit: Many banks set a higher purchase limit for such payments than for payments with cards, allowing you to sell more expensive products.
Bring a new level of security
- Security: Once validated by the payer, the payment is irrevocable, and as soon as the money has been settled to your bank account, there is no more risk of dispute by the consumers.
- Consumers have control of the payments. In many cases, they might be reluctant to provide their IBAN for a direct debit or their PAN for a card payment. The initiation of payments allows them to have full control of their payments and to put more trust in e-commerce.
- The PISP automates the transaction from the merchant website, so there’s no risk of the payer incorrectly providing the wrong IBAN, amount, or reference when initiating the payment.
Reduce costs
- Credit Transfers and PISP provide a good opportunity for merchants to replace expensive checks and paper invoicing.
- Fewer unpaid transactions than checks or direct debit: In some European countries, unpaid direct debit in relation to insufficient funds in the bank account has a rate higher than 2%. Worldline’s solution will help you reduce your unpaid transactions, allowing you to reduce costs in relation to fraud management and recovery of money.
- Less work to reconcile payments and settlements: Worldline as a PISP will allow merchants to automatically reconcile them, meaning less operational costs.

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