The European Digital Payments Industry Alliance welcomes the European Commission’s June 2023 proposals to revise the Payment Services Directive (PSD3/R) and create an Open Finance framework (FiDA).
These proposals hold the promise to create a far more harmonised market in the payment sector, as well as to make Europe a leader in retail financial services beyond payments.
To make the most of this opportunity, we suggest that the following key elements are addressed:
- Transitional provisions for licensed firms should be realistic. Re-submitting compliance information will create a distracting burden for firms and supervisors with limited resources.
- Safeguarding rules should address de–risking pragmatically. It is positive that firms can rely on central banks in emergencies. This should be underpinned by clear practical mechanisms.
- Data in scope of PSR and FiDA should be divided clearly. The same (payment) data might fall under two overlapping rulesets, creating uncertainty. We suggest an explicit lex specialis rule.
- Firms should not be made liable for things beyond their control. To function as an incentive towards consumer protection, liability needs to focus on areas that firms can influence.
- Non-banks should have access to infrastructure in a timely way. The settlement finality directive amendment should ideally be adopted through the negotiations on instant payments.
