AMS_03 François De Witte_. .pptx

1. FDW Consult Services BV
Cash Management
François De Witte
Antwerp
Management
School event-
FIRe Hub
Brussels,
January 26, 2024
François De Witte
Payment
regulation
impacting
Fintechs

2. FDW Consult Services BV
Cash Management
François De Witte
Main current Legislations
Recent EU regulations impacted the payments market creating
new opportunities for Fintech.
The most important ones are:
• PSD2 (Payment Service Regulation 2) creating the basis for
open banking in payments
• MiCA Regulation – Regulation 2023/1114 of May 31, 2023, on
Markets in Crypto Assets (MiCA).
p. 2

3. FDW Consult Services BV
Cash Management
François De Witte
• Banks will have to provide non-discriminatory access of payments
services to new players, the TPP’s(Third Party Payment Service
providers) :
o PISP (Payment Initiation Service Providers):
✔ Offering initiation of payments on behalf of PSU (including also
cards payments)
✔ Highly regulated
PSD2 – The revolution - Introduction of TPP’s
PISP
Interface
API
BANK
(ASPSP)
API
BANK
(ASPSP)
Payer
(PSU)
Payment initiation
Confirmation
p. 3

4. FDW Consult Services BV
Cash Management
François De Witte
o AISP (Account Information Service Providers)
✔ Account aggregation (also for cards)
✔ Typically, cross banks account information
Payer
(PSU)
AISP
Interface
API
BANK
(ASPSP)
API
BANK
(ASPSP)
Send account
statements
Request account
statements
Multibank
account overview
PSD2 – The revolution - Introduction of TPP’s
p. 4

5. FDW Consult Services BV
Cash Management
François De Witte
The Revolution : PSD2
p. 5
PSD2 has reduced the barriers to entry for newcomers, including the
Fintechs
Source: PAYCEC :
Payment services
directive 2 (PSD2)
101 - the future of
cross border online
payment
It has paved the way to Open banking - a practice that allows third-party
payment providers and other FIs (financial institutions) to get secure access to
customers’ banking transactions and other data from banks and FIs.

6. FDW Consult Services BV
Cash Management
François De Witte
New partnerships
PSD2 is an opportunity for banks to develop
external partnerships with FinTechs
In-house innovation
Possibility for banks to innovate
internally and try to compete
with new players on their own
Potential to develop partnerships
with other traditional banking
players facing the same threat
Ability to reach-out to
external players can foster
innovative ideas
Smaller financial services
providers have a greater
speed and agility, which
can benefit banks in a
partnership
p. 6

7. FDW Consult Services BV
Cash Management
François De Witte
MiCA Regulation (MiCAR)
MiCAR is setting down for the whole crypto-asset industry in Europe a new
set of rules on:
• The transparency and disclosure requirements for the issuance and
admission to trading of crypto-assets;
• The authorization and supervision of crypto-asset service providers
(CASPs), issuers of ARTs (Asset Referenced Tokens) and issuers of EMTs
(Electronic Money Token), a crypto-asset that aims to maintain a stable
value by referencing to the value of one official currency (stablecoin)
by the national competent authorities (in Belgium, the FSMA)
• Requirements for the protection of holders of crypto-assets in the
issuance, public offering and admission to trading of crypto-assets;
• The protection of clients of CASPs
• Anti-abuse measures to ensure the integrity of crypto-asset markets.
At global level, the MiCAR constitutes the most advanced legislation on
crypto-assets to date, which should be beneficial for all parties involved,
including the FinTech.

8. FDW Consult Services BV
Cash Management
François De Witte
Regulation on Instant Credit Transfers in euro:
• Payment service providers providing standard credit transfers in euro, will also be
required to offer the service of sending and receiving instant payments in euro.
• The charges that apply (if any) must not be higher than the charges that apply for
standard credit transfers.
PSD3 and PSR (Payment Service Regulation):
• Direct access for PIs (payment institutions) to all the EU’s payment systems,
including those steered by the central banks - currently, only few payment systems
provided this direct access. This will establish a level playing field between banks
and PIs => improve the competition in the corporate payment market.
• Anti-Fraud Measures, including the Obligation for the payee PSP and payer PSP to
check the consistency between the name of the payee provided by the payer and
the IBAN, free of charge – was already included in the draft regulation for Instant
Payments.
• Strong Customer Authentication more adapted to recent market developments
(e.g. move from 90 to 180 days for the Account Information Services).
New Forthcoming Regulations – Impact on Fintech
p. 8

9. FDW Consult Services BV
Cash Management
François De Witte
FiDA (Financial Data Access) Regulation:
• FIDA will grant consumers and SMEs the right to authorize third parties – or data
users – to access their data relating to products and services in the financial
sector, including nonpayment data, held by data holders (banks and financial
institutions)
• FIDA facilitates data exchanges between data holders and data users, so that not
only data holders can leverage on data
• FIDA creates new business models, enabling innovation in the financial services
industry, and the move to open finance.
New Forthcoming Regulations – Impact on Fintech
p. 9

10. FDW Consult Services BV
Cash Management
François De Witte
Regulation: A Burden or an Opportunity
Regulations are often viewed a burden:
• More constraints.
• Risk of bureaucracy and red tape
• Fintech do not always have the resources and critical mass to follow.
But they can also create opportunities:
• Create the path to new Business Models (e.g. PSD2)
• Give credibility to an industry by creating stability in a rapidly evolving
sector and building trust through compliance (example MICAR)
• Harmonization in an unregulated field (e.g. MICAR and FIDA)
• Facilitate data exchange; e.g. FiDA
• New role for Fintech => Regtech
p. 10

11. FDW Consult Services BV
Cash Management
François De Witte
Attachments
p. 11

12. FDW Consult Services BV
Cash Management
François De Witte
Payment trends –
Increased
Regulations
Source: Cap Gemini World Payments Report
2023
p. 12

13. FDW Consult Services BV
Cash Management
François De Witte
PSD2 – API as a new corporate channel
EU / EEA
Banks
Swift connection
Multibanking
- Bank or
Middleware
provider
Corporate
PSD2 API
Aggregator
PSD2
Real time
APIs
Swift banks
Banks
Proprietary online
channel
TPP (AISP
or PISP
p. 13

14. FDW Consult Services BV
Cash Management
François De Witte
Open Banking is increasing very fast
Source: The Open Banking revolution needs flexible API connectivity : 2023 / BPC &
Payments Cards Mobile
141
p. 14

15. FDW Consult Services BV
Cash Management
François De Witte
Contact details
p. 15
François De Witte
FDW Consult Services B.V.
Director & Senior Consultant
T. + 32 475 56 84 36)
E. fdewitte@fdwconsult.be
www.fdwconsult-be02.webnode.com