The European Commission has introduced reforms to the
regulations governing the electronic payments sector, among them, mitigating fraud by enabling the payment
service providers to share information. It comes at a time the fintech ecosystem is growing.
Also
included in the revised Payment Services Directive are the measures that would
extend the refund rights for consumers who fall victim to fraud, the EU said.
The commission is also
planning to allow non-banks payment service providers to access all the EU
payment systems. That way, according to the announcement, the new set of rules
would bring a level playing field between the banks and non-banks. Moreover,
the measure would provide appropriate safeguards and secure non-banks’ rights
to a bank account.
Also included in the
commission’s set of reforms for electronic payments is the enhancements to open
banking, which has been at the center of the discussions in the UK’s fintech sector
most recently. Open banking provides a way for consumers and businesses to
securely share their payment account details with regulated third parties and receive customized services such as lending or payments.
Under the new reforms,
the European Commission plans to address the remaining issues before the
rollout of the open banking initiative. Finance Magnates reported this month that the Joint
Regulatory Oversight Committee (JROC), which is co-chaired by the Financial
Conduct Authority (FCA) and the Payments Systems Regulator (PSR), has set
dedicated workstreams for
the rollout of open banking.
“In practice, this
proposal will lead to more innovative financial products and services for
users, and it will stimulate competition in the financial sector,” the
commission said in a statement. “Previously burdensome processes such as
comparison of services of switching to a new product will become smoother and
cheaper.”
Besides that, the new
reforms aim to improve the availability of cash in shops and through ATMs. In
the plan, retailers would be allowed to offer cash services to consumers. Some
of the benefits the commission aims to achieve with that is the innovation
in the financial services sector.
Opening Payments Markets
The package of the
European Commission’s reforms comes at a time the market is shifting away from
the dominance of large banks and popular payments platforms like Visa and
Mastercard. The commission’s data shows that the EU’s electronic payments
reached €240 trillion in 2021 compared to €184 trillion in 2017. The figure was
partly boosted by the Covid 19 pandemic.
Meanwhile, the European
Union (EU) has
agreed on new
regulations for digital assets that could impose restrictions on banks from
investing in the sector. The step is in response to the calls by the EU
legislators to prevent speculative digital assets from entering the traditional
banking sector.
According to the
agreement that resulted from a meeting between the negotiators of the EU
Council, the Parliament, and the commission, banks should disclose their risks
related to cryptocurrencies . Furthermore, the EU legislators agreed on setting
capital requirements for cryptocurrencies.
Although
the new changes proposed a favourable stance on stablecoins, free-floating
cryptocurrencies, or those driven by demand and supply, have been assigned
higher risk weights, according to the preliminary details of the legislation.
Revolut slashes crypto fees; BitPay adds new payment options; read today’s news nuggets.
The European Commission has introduced reforms to the
regulations governing the electronic payments sector, among them, mitigating fraud by enabling the payment
service providers to share information. It comes at a time the fintech ecosystem is growing.
Also
included in the revised Payment Services Directive are the measures that would
extend the refund rights for consumers who fall victim to fraud, the EU said.
The commission is also
planning to allow non-banks payment service providers to access all the EU
payment systems. That way, according to the announcement, the new set of rules
would bring a level playing field between the banks and non-banks. Moreover,
the measure would provide appropriate safeguards and secure non-banks’ rights
to a bank account.
Also included in the
commission’s set of reforms for electronic payments is the enhancements to open
banking, which has been at the center of the discussions in the UK’s fintech sector
most recently. Open banking provides a way for consumers and businesses to
securely share their payment account details with regulated third parties and receive customized services such as lending or payments.
Under the new reforms,
the European Commission plans to address the remaining issues before the
rollout of the open banking initiative. Finance Magnates reported this month that the Joint
Regulatory Oversight Committee (JROC), which is co-chaired by the Financial
Conduct Authority (FCA) and the Payments Systems Regulator (PSR), has set
dedicated workstreams for
the rollout of open banking.
“In practice, this
proposal will lead to more innovative financial products and services for
users, and it will stimulate competition in the financial sector,” the
commission said in a statement. “Previously burdensome processes such as
comparison of services of switching to a new product will become smoother and
cheaper.”
Besides that, the new
reforms aim to improve the availability of cash in shops and through ATMs. In
the plan, retailers would be allowed to offer cash services to consumers. Some
of the benefits the commission aims to achieve with that is the innovation
in the financial services sector.
Opening Payments Markets
The package of the
European Commission’s reforms comes at a time the market is shifting away from
the dominance of large banks and popular payments platforms like Visa and
Mastercard. The commission’s data shows that the EU’s electronic payments
reached €240 trillion in 2021 compared to €184 trillion in 2017. The figure was
partly boosted by the Covid 19 pandemic.
Meanwhile, the European
Union (EU) has
agreed on new
regulations for digital assets that could impose restrictions on banks from
investing in the sector. The step is in response to the calls by the EU
legislators to prevent speculative digital assets from entering the traditional
banking sector.
According to the
agreement that resulted from a meeting between the negotiators of the EU
Council, the Parliament, and the commission, banks should disclose their risks
related to cryptocurrencies . Furthermore, the EU legislators agreed on setting
capital requirements for cryptocurrencies.
Although
the new changes proposed a favourable stance on stablecoins, free-floating
cryptocurrencies, or those driven by demand and supply, have been assigned
higher risk weights, according to the preliminary details of the legislation.
Revolut slashes crypto fees; BitPay adds new payment options; read today’s news nuggets.
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- Source: https://www.financemagnates.com//fintech/payments/eu-unveils-sweeping-reforms-to-drive-growth-in-fintechs/
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