• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
The Evolution of Payments: Open Models and Regulatory Changes

The Evolution of Payments: Open Models and Regulatory Changes

11/02/2023
3rd Dairy Market Innovation Asia Pacific Summit 2025

Be Part of the 3rd Dairy Market Innovation Asia Pacific Summit 2025

06/20/2025
S.K.Singhi & Partners LLP Expands Global Legal Reach with LEXITS Platform and International Recognition

S.K.Singhi & Partners LLP Nominated for Go Global Awards 2025

06/19/2025
S.K.Singhi & Partners LLP Expands Global Legal Reach with LEXITS Platform and International Recognition

S.K.Singhi & Partners LLP Expands Global Legal Reach with LEXITS Platform and International Recognition

06/19/2025
Assist Export Bridges Global Markets with Strategic Trade and Consultancy Solutions

Assist Export Nominated for Go Global Awards 2025

06/19/2025
Assist Export Bridges Global Markets with Strategic Trade and Consultancy Solutions

Assist Export Bridges Global Markets with Strategic Trade and Consultancy Solutions

06/19/2025
Tariffs Lowered in New UK-U.S. Trade Agreement

Tariffs Lowered in New UK-U.S. Trade Agreement

06/17/2025
U.S. Signs Order to Implement Partial Tariff Reductions on UK Imports

U.S. Signs Order to Implement Partial Tariff Reductions on UK Imports

06/17/2025
Canada, U.S. Target 30-Day Timeline for Economic and Tariff Agreement

Canada, U.S. Target 30-Day Timeline for Economic and Tariff Agreement

06/17/2025
NUTRITECH NUTRITION: Leading the Fight Against Malnutrition in South Asia

Nutritech Nutrition Nominated for Go Global Awards 2025

06/20/2025
NUTRITECH NUTRITION: Leading the Fight Against Malnutrition in South Asia

NUTRITECH NUTRITION: Leading the Fight Against Malnutrition in South Asia

06/17/2025
FlavAir StyX from Denmark’s Considaret Clk Group Expands Worldwide with Natural Anti-Addiction Filters

Considaret Clk Group Denmark Nominated for Go Global Awards 2025

06/20/2025
FlavAir StyX from Denmark’s Considaret Clk Group Expands Worldwide with Natural Anti-Addiction Filters

FlavAir StyX from Denmark’s Considaret Clk Group Expands Worldwide with Natural Anti-Addiction Filters

06/17/2025
supplychainreport
Friday, June 20, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

The Evolution of Payments: Open Models and Regulatory Changes

by Richie
11/02/2023
in Compliance, Know Your Customer (KYC)

The world of payments has been undergoing significant transformations in recent years. Initiatives like the Single Europe Payments Area (SEPA) and the PSD2 Directive have paved the way for innovative services and the emergence of open banking. This article explores the impact of open banking on the payments landscape, recent regulatory changes, and the importance of standardization in this evolving ecosystem.

Open Banking and the Shift to Open Finance:

YOU MAY ALSO LIKE

Liberia’s Lonestar Cell MTN Mobile Money Fined for AML/CFT Compliance Failures

AI in Risk Management: Current Applications, Future Potential, and Limitations

Open banking has created an ecosystem that facilitates the exchange of data and information among member providers. This has given rise to open finance, where authorized third-party providers access customer information, subject to customer consent. This expanded dataset allows for the creation of customized financial products and services, covering areas like savings contracts, mortgages, pensions, insurance, loans, and investments.

Regulatory Landscape and New Frameworks:

Regulators are actively promoting open finance. The European Commission has proposed a new regulatory package to replace the PSD2 framework, consisting of a Payment Services Directive (PSD3) and a Regulation (PSR). These changes aim to reduce market fragmentation, enhance the protection of Payment Service Users (PSUs) against fraud, and improve competitiveness in the payments sector. The Regulation on Instant Payments, released in October 2022, mandates Payment Service Providers (PSPs) to offer instant payment services and introduces Confirmation of Payee (CoP) requirements for both domestic and cross-border payments in euro. The Financial Data Access Regulation (FIDA) encourages innovation in financial products and services to stimulate competition.

Standardization in an Open Environment:

The proliferation of open banking and open finance has coincided with the global adoption of open API standards. Standardization efforts aim to establish common rules that facilitate integration among market players, increase competition, and ensure security. Financial institutions now have guidelines on using APIs compliant with current regulations.

Creating Centralized Solutions:

While proprietary solutions are already in use, centralization can enhance interoperability across Europe. The “Name Check” Service introduced by CBI, a consortium company comprising Italian financial institutions, is an example. This service offers real-time verification of IBAN Codes to match account holders’ names, promoting interoperability and security. CBI is expanding this service across Europe in collaboration with Swift’s Payment Pre-validation service. CBI is also developing solutions for VAT code verification, digital identity management, online onboarding, and compliance measures such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.

Clear Implementation Guidelines:

To ensure interoperability among market solutions, clear implementation guidelines are essential. Digitalization has become integral, necessitating collaboration and partnerships among incumbents to innovate and enhance user experiences. Collaboration offers cost-efficiency, reduces fragmentation, and unlocks new business opportunities, leading to improved investment efficiency and consistent, secure outcomes across verifications.

The payments landscape is evolving rapidly with the advent of open banking and open finance. Regulatory changes and standardization efforts are reshaping the industry, while collaboration and partnerships among incumbents are key to creating innovative products and services. In this dynamic environment, clear guidelines and interoperability will continue to be crucial for the future of payments.

Stay current with supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#OpenBanking #OpenFinance #PaymentsInnovation #FinancialRegulation #PSD3 #InstantPayments #FinancialDataAccess #OpenAPI #Standardization #PaymentSecurity #DigitalTransformation #EUFinance #PaymentServices #Fintech #Compliance #BankingInnovation #Interoperability #CustomerProtection

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.