Europe’s lenders have warned the European Commission that the sector will not be prepared by a 14 September deadline to abide by new online payment regulations – the so-called Second Payment Services Directive – without serious disruptions to the service.
In a letter from the industry to the European Commission, the industry has warned that up to 25% of online transactions could be affected and are requesting time to adapt. The disruption would be especially felt in the retail sector. The projected disruption estimate has been confirmed by the European Savings Banks Group – an Association of Co-operative Banks – and echoed by E-commerce groups and the UK’s Finance trade body.
A spokesperson for the European Commission recently said that “the industry has had over three years to prepare for the new requirements” but Brussels will continue consulting with stakeholders.
The planned changes require banks to verify payments over €30 through extra verification such as entering a code received via a text message, a process that requires new software.
Ultimately, the enforcement of the new regulation rests with national supervising agencies, many of whom have signalled they would call for an 18-month transition period, while the industry is seeking a “level playing field” for companies across the EU.