The adoption of the revised Payment Services Directive, PSD2, has set the stage for Open Banking in Europe, an Open Banking Mandate with significant impact on the financial services industry. Effective from January 2018, Europe has a unique legal framework for Open Banking, a game changer for the banking industry – an irrevocable shift to Open Banking in Europe is now becoming reality: The PSD2 is the key directive for borderless Open Banking and payment services. It regulates new types of trusted payment service providers, TPPs, and the right to access payment account data (XS2A) through so-called Open API sets. The banks are no longer the only ones that have access to consumer’s bank accounts and payment information. Payment Initiation Service Providers (PISPs) : With explicit customer permission, PISPs may initiate a payment transaction directly from the customer’s bank account. Account Information Service Providers (AISPs) : With explicit customer permission, AISPs can consolidate customer payment account details from multiple banks in one portal. From September 2019, strong customer authentication (RTS SCA) for payments will be mandatory. The SCA implementation is a key challenge for the payments industry. Open Banking allows for new services that currently do not exist, e.g. non-bank payment initiation, account information services, and personal finance management cross bank . Trend: Open Banking apps are going to be the new normal, combining online banking, payment initiation services, payment account information services, and value-added convenience services (e.g. cash-in/cash-out location finder). Pushed by digital challenger banks and consumers that embrace Open Banking apps, large banking groups cooperate with Trusted Third Party (TPP) partners. Open Banking is going to reshape the European banking and payment landscape and, ultimately, the market position and role of banks in the banking ecosystem. Source: Payment Industry Intelligence | Payment Card Yearbooks