The reports have been produced by the EBA’s Working Group on Electronic Alternative Payments (e-AP WG) and are intended to help financial institutions (FIs) navigate the changing payments landscape.

Crypto-currencies like Bitcoin or Ripple have the ability to disrupt the payment and banking landscape in future years, and crypto-technologies in general will also be important in the fight against cyber-criminals.

Equally, the digital customer service interface will be crucial in determining where banks and businesses interact with consumers in the future. FIs need to ensure they don’t just become ‘pipes’ with no value-adding higher level business.

The opinion paper on DCSI focuses in particular on a ‘virtual layer’ on top of the existing single euro payments area (SEPA) transfer and card payment infrastructure, referencing the EBA’s MyBank offering that is seeking to become a ‘one stop shop’ e-commerce transaction platform.

A pan-European DCSI protocol for real-time services for payment initiation, account information and digital identity services (for B2C and B2B transactions) could be offered by account-servicing payment service providers (PSPs) to the benefit of retailers and consumers. It could also benefit providers of electronic alternative payment solutions and of the account servicing institutions themselves. The paper is hoping to do all of this. 

“The latest opinion paper published by the e-AP Working Group advances previous thought leadership work on the DCSI concept by describing the core concept, its key use cases (including mobile real-time instant payments) and possible ways forward for the industry on this potential future co-operative initiative,” said Vincent Brennan, deputy chairman of the EBA and Chair of the EBA e-AP WG. “The members of the EBA working group believe that the financial industry can significantly support and accelerate developments in the digital economy if it succeeds in creating this next level of digital interfacing.” 

Crypto-technologies
The crypto-technologies information paper from EBA e-AP WG is aimed at transaction banking and payment professionals, where transformative change can be expected. Four possible categories, applications and scenarios are contained in the report.

“Crypto-technologies are a key subject for further study for transaction banking and payment professionals, especially against the background of evolving financial infrastructures,” said Brennan.

“The paper provides a hands-on introduction to the topic. It specifically focuses on the practical potential and related implications of crypto-technologies for the transaction banking and payments area in the short to medium term.”