How PSD2 could improve payment experience for merchants. Reach, ease of use, conversion and costs of payments in the context of PSD2.

1. Merchant Payments Ecosystem, February 16-18, Berlin
How PSD2 could improve the payment
experience for merchants
Reach, ease of use, conversion and costs of
payments in the context of PSD2
Dennis Van Allemeersch

2. Merchant Payments Ecosystem, February 16-18, Berlin

3. Merchant Payments Ecosystem, February 16-18, Berlin
Regulated (SEPA) payment infrastructure has
good Reach but poor Conversion

4. Merchant Payments Ecosystem, February 16-18, Berlin
Electronic Alternative Payments (eAP) services
have good Conversion but poor Reach

5. Merchant Payments Ecosystem, February 16-18, Berlin
Hence, payment infrastructure and services
layer need to be linked through open APIs

6. Merchant Payments Ecosystem, February 16-18, Berlin
However, the Open Bank APIs should be standardized at
EU level to avoid fragmentation & accelerate innovation
• Open Transaction Alliance (OTA) > branche-initiative payment experts
• Controlled Access to Payment Services (CAPS) > Equens, Vocalink
• Digital Customer Services Interfaces (DCSI) > Euro Banking Association

7. Merchant Payments Ecosystem, February 16-18, Berlin
Ecommerce Europe urged ECB to put
standardization on ERPB 2016 agenda

8. Merchant Payments Ecosystem, February 16-18, Berlin
Furthermore, the API Service layer could lead
to lower indirect costs for merchants
replaces ageing banking payment (debit) systems => higher reliability

9. Merchant Payments Ecosystem, February 16-18, Berlin
AS PSPs could lower costs further by reducing
fraud through new services
check customer and their financial position

10. Merchant Payments Ecosystem, February 16-18, Berlin
AS PSPs could also increase check-out
conversion through new data propositions
Example: for multi-banked customers -
aggregate customer data over several
relations (banks / credit card providers / …)
=> Better credit scoring

11. Merchant Payments Ecosystem, February 16-18, Berlin
Finally, PISPs will enable merchants with a
more customer centric approach
Customer in Control