equensWorldline, a subsidiary of Worldline, the European market leader in payments and transactional services industry, is proud to announce that the company has successfully supported several banks in obtaining exemption from the fall-back mechanism required under PSD2. These include Credit Europe Bank N.V., Banque de Neuflize OBC, Banque CPH and vdk Bank. The exemption, which saves the banks significant investment and resources for setting up a contingency solution, was granted as a result of their use of equensWorldline’s Digital Banking Platform.
Following the PSD2 deadlines of 14 March and 14 September, several European banks based in the Netherlands, Belgium and France have already been granted an exemption from the fall-back mechanism upon evidence of their capability to provide access to their infrastructure to Third Party Providers (TPP). This exemption means that they have the required APIs ready in accordance with the Regulatory Technical Standards (RTS) prescribed by the European Banking Authority (EBA) and corresponding National Competent Authorities (NCA).
Ulrich S. Dietze, Country Manager Germany and Belgium, Credit Europe Bank N.V. says: “Our close collaboration with equensWorldline has proved a significant move: Credit Europe Bank N.V. successfully applied for the exemption from the fall-back mechanism, thus avoiding a whole raft of operational and financial consequences. PSD2 is yet another reason for working with a payments technology partner that is shaping the implementation by actively participating in important European associations and working groups.”
Full support for the requirements of PSD2
With PSD2, banks offering online access to their customers’ payment accounts are obliged to open access to their infrastructure to Third Party Providers (TPPs). In addition to providing a sandbox for their API service, PSD2 also requires banks to set up a contingency mechanism (or fall-back solution) in case the dedicated API service becomes unavailable, or is not working properly. Setting up this fall-back mechanism can be a serious challenge, given the required additional investments and resources.
This burden could be removed by obtaining an exemption. Banks can be granted an exemption from setting up a fall-back mechanism by the National Competent Authority if their dedicated interface (API) meets specific criteria, as stated in the PSD2 regulation. These criteria refer to factors such as robustness, availability, performance, security and detailed documentation. In addition, the dedicated interface also has to meet certain design and testing standards and must have been widely used for at least three months.
equensWorldline supports banks with this exemption request, as well as the creation of testing facilities or a ‘sandbox’ environment, and documentation on the API’s in a very short timeframe. The company also provides the end-to-end dedicated interfaces, including consent management and TPP verification which comply with PSD2 regulations and enable third-party providers to access customer account information in a correct, reliable and secure manner.
Within the new context, payment service users are protected by the Strong Customer Authentication (SCA) requirements and must give their permission before their details are submitted or a payment is processed. Furthermore, equensWorldline has strong PSD2 expertise with a presence in established European PSD2 groups and thorough regulatory control to ensure the product is always up to date. equensWorldline is currently working with several other European banks to support them in obtaining exemption from the fall-back mechanism, thus providing them with significant savings in resources and investment.
Mark Hakkenberg, Board member and Chief Operating Officer, Banque de Neuflize OBC, says: “Due to our long-standing collaboration with equensWorldline we successfully implemented the PSD2 APIs and received the exemption from the fall-back mechanism. Being granted an exemption demonstrates the high level of quality and security of the solution provided by equensWorldline, which is a solid basis for innovation to explore further open banking capabilities.”
Michael Steinbach, CEO equensWorldline and managing director Financial Services at Worldline, adds: “Ever since the introduction of PSD2, equensWorldline has been fully committed to develop a high quality PSD2 compliancy solution. The fact that several of our bank clients gained an exemption from the fall-back mechanism clearly demonstrates our capability to support and unburden banks in their PSD2-related challenges.”