In the interests of protecting credit card holders persistently in debt, the FCA has introduced a new set of rules. Effective from March 2018, firms must help customers to break the cycle of persistent debt and ensure those who cannot afford to repay more quickly are given help. However, credit card firms have been given until September 2018 to fully comply.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2