Payment Services Directive to be transposed into Maltese law

Bill 89 of 2019 just been tabled before the Maltese Parliament

The ‘Various Financial Services Laws (Amendment) Act, 2019’ (Bill 89 of 2019) has just been tabled before the House of Parliament, and it is anticipated that it will bring about significant amendments to the financial services laws. By means of this bill, the following Directives will be transposed into Maltese Law:

Directive (EU) 2015/2366 on Payment Services in the Internal Market (PSD2)

Articles 10 and 25 of Directive 2014/92/EU (Payment Accounts Directive)

Article 124 of Directive 2014/59/EU (Bank Recovery and Resolution Directive).

The Amended Payment Services Directive (PSD 2)

The Payment Services Directive (PSD2) seeks to control the payment services situated within the European Union. The directive allows bank customers as well as businesses, to control their finances via. third-party providers. Some of the main changes brought about by the Directive include:

Third-Party Providers (TPPs)

One of the main amendments is the introduction of Third-Party Providers (TPPs), which consists of Payment Initiation Services Providers (PISPs) or Account Information Service Providers (AISPs). While AISPs are allowed to access data relating to the accounts provided by the payment service user, PISPs are permitted to initiate payments into or out of a service user account.

Enhanced Security

PSD2 also introduced a more strong and secure customer verification system both for credit institutions and for banks, as a result of which, many European banks will be renovating their card technology for improved security.

Provisions concerning Bank Charges

Transactions between banks situated within EEA countries will see the allocation of charges between the payee and the payer, regardless of the currency of the transfer. Moreover, supplementary fees cannot be imposed by merchants on those choosing to pay with electronic means such as credit cards.

The Payment Services Directive will bring about higher standards of bank transparency and consumer protection all over the European Union. Moreover, PSD2 will also create more opportunities for Payment Service Providers (PSPs) inside the internal market.