PSD2: Real-time processing? Not so fast
Industry experts observe that while the revised Payment Services Directive (PSD2) represents an opportunity for corporate treasury to take advantage of real-time payment processing, it will take some time for the full benefits to be realised.
The 2018 UK business payments barometer report published by Bottomline Technologies notes that financial decision-makers recognise the change that PSD2 can bring to payments within their businesses.
Few observers expect large numbers of corporates to become payment-initiation service providers, offering their own service to their customer bases in an attempt to bypass payment service fees.
Bob Stark, Kyriba
However, some of those operating efficient shared services and payment factories may be interested in extending their reach into payment initiation, according to Bob Stark, vice-president of strategy at Kyriba.
“The registration and regulatory compliance requirements in each country the corporate would wish to offer payment services in may be enough to dissuade many from investigating further,” he says.
“Additional research will uncover the degree of specialization needed to be more efficient and cost effective than outsourced third-party providers.”
Ed Adshead-Grant, Bottomline Technologies’ general manager for payments and cash management, says one of his corporate clients that had acquired a regulatory licence to conduct payments on behalf of customers is now in an “accelerated process” to off-load it due to the risks involved in a non-core activity.
Instead, PSD2 will prompt corporates to hold discussions with existing payment service providers and newly created payment-initiation service providers in search of better deals, suggests Lu Zurawski, practice lead for retail banking at ACI Worldwide.