The European Union’s Payment Accounts Directive (PAD) was implemented in the U.K. under the Payment Accounts Regulations (PARs) in 2015. In line with the Directive, the provisions of the PARs on packaged accounts, account switching, and basic bank accounts took effect in the U.K. on 18 September 2016. However, most of the provisions related to transparency and comparability of fee information came into force from April 2018. The firms affected will have six months after the announcement to implement the provisions. On 30 April 2018, the FCA published the final list of the most representative services within the meaning of PAD, which are linked to payments accounts and are subject to a fee.
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