European Commission’s recent proposals demonstrate commitment to create even stronger foundations for open banking powered Pay By Bank solutions across Europe
Todd Clyde, Chief Executive Officer at Token.io comments:
”Today’s publication of the European Commission’s proposals for a revised regulatory framework for payment services is an exciting development for the payments industry, demonstrating commitment to create an even stronger foundation and infrastructure for open banking powered Pay By Bank solutions in all European markets.
We are particularly pleased to see the European Commission’s proposal include measures aimed at increasing the baseline adoption, functionality and performance of open banking APIs. API-based interfaces provide the most secure and performant way for Third Party Providers (TPPs) like Token.io to interface with banks, and ultimately support the delivery of innovative services and better outcomes for end users. Further, we believe formalising the explicit minimum baseline functionality required from banks’ open banking interfaces will help level-up the overall performance of the ecosystem.
We also welcome the European Commission’s statement that banks and TPPs are free to establish commercial arrangements for ‘premium’ APIs, through which enhanced functionality and value-added services beyond those required under regulation can be provided. Premium APIs, built on equitable commercial models, have the potential to enable the development of higher-quality and more innovative end-user propositions (such as dynamic recurring payments and payment guarantees) and will support the wider adoption of open-banking based payment propositions.
Both the PSR/PSD3 and Financial Data Access (FIDA) proposals are setting in motion a future for open finance in Europe by unlocking possibilities for innovation across the financial services and other industries.”
Press enquiries
Isabel Davies / Beckie Richardson | Token@iseepr.co.uk | +44 (0) 113 350 1922