What does September’s PSD2 deadline mean for UK or European businesses and banks?
- Open Banking
- 13.09.2019 11:27 am
With the next phase of PSD2 due to come into effect on September 14th 2019, the experts behind Yolt Technology Services are available to provide expert analysis, commentary, and predictions about the impact PSD2 is expected to have. Will this deadline be a slow start or the beginning of a fundamental shift, affecting everyone from payment providers to SMEs and large banks?
As a pioneer in the Open Banking space and the first TTP to successfully connect to all CMA9 banks using the APIs, the Yolt team is uniquely positioned to comment on the potential implications of the legislation for businesses, banks and their customers. As well as what the rest of Europe can expect after the PSD2 deadline.
The impact of PSD2 for the sector
The success rate for UK Open Banking API (Application Programming Interface) calls is approaching 98% and millions of consumers across the UK are already benefiting from innovative new services, utilising API connections.1
Following the full adoption of PSD2, the open banking opportunities will present a more level playing field as the number of APIs available increases creating new opportunities for a wide range of third-party providers, including incumbents and those yet to be founded. Already, Yolt has seen increases to the number of successful API calls from June 2018, to July 2019 and this trend will likely increase and accelerate demand for connections.
How do businesses and banks obtain compliant API connections?
Yolt has been at the forefront of PSD2’s implementation in the UK since the very start, firstly launching its consumer app and then more recently, Yolt Technology Services (the technology that powers the Yolt consumer app).
YTS is now offering its tried and tested API technology to financial institutions and businesses enabling them to develop new, innovative experiences and revenue models via account information services (AIS) and payment initiation services (PIS). Since its launch in February, YTS is currently providing its services to various ING Business Units, as well as leading fintechs Payvision (the Netherlands-based global acquirer and payment processing platform) and Funding Options (the business funding comparison platform). YTS is also the proven provider of the technology with its eponymous consumer app, Yolt, which has attracted over 1 million registered users since launch across 3 markets – Italy, France and the UK.
YTS, short for Yolt Technology Services is part of the Yolt brand which also includes the Yolt app (the smart thinking money management app) and it was the first TTP to successfully connect to all CMA9 banks using Open Banking APIs in September 2018. The app surpassed half a million registered users last year and now has over a million registered users. Just as the number of users has risen, Yolt’s activity has also grown: from just 3 API calls on 16th January 2018, to completing over 250,000 million API calls to date. This means that Yolt is responsible for around 50% of all Open Banking API calls in the wider UK market.