22 April 2018
Elizabeth Lumley
Elizabeth Lumley

Elizabeth Lumley

Elizabeth Lumley - Girl, Disrupted

165Posts 708,047Views 173Comments

The PSD 'what ifs'

10 December 2009  |  3767 views  |  0

Today's Innovation in Payments rountable, sponsored by the Visa Europe Research Fellowship at the Centre for the Study of Financial Innovation, was filled with many 'what ifs' in regards to the Payments Services Directive.

What if settlement risk increases as a result of all these potential new payment institution entrants?

What if Tesco decide to deal with all their payments via their own Tesco bank? (estimated to be six percent of the payment volumes in the UK)

What if mobile phones get into the PI game? What if independant ATMs for that matter?

What if banks move their payment business to a PI group in order to reduce their capital adequency requirements? (PI have a lower capital adequency threshhold, simple because they do not hold and invest deposits).

What if the banks don't take the PSD seriously?

What if payments is not actually a banking business at all?

And who would want to invest in becomming a PI anyway?

The PSD, supposedly, came into affect on Nov. 1st. However, just in terms of compliance (everyone shout out Sweden) we are a few months away from full EU acceptance. Hence the proliferation if 'What ifs' 'maybes' and 'should we be concerned' is because the post-PSD environment has yet to fully emerge.

The roundtable was started off by a speaker who said the main issue with the PSD will be discovering the "unintented consequences."

I can't help thinking the PSD conversations sound simliar in tone to all those discussions around another EU Directive that was supposed to protect the client with increased competition and tranparency - What if all the predictions, instead of unintended consequences, around Mifid had come true?

TagsCardsPayments

Comments: (0)

Comment on this story (membership required)

Latest posts from Elizabeth

FinTech does not live in London - It is global

29 June 2016  |  9203 views  |  0 comments | recomends Recommends 0 TagsInnovationBrexit

Invest in dirty fingernails, not manicured hands

20 April 2016  |  3893 views  |  2 comments | recomends Recommends 1 TagsInnovationStart ups

Trust me, it's not a secret

17 February 2016  |  3054 views  |  2 comments | recomends Recommends 1 TagsInnovationStart upsGroupWomen in Technology

Fix the crumbling infrastructure or DIE!

06 January 2016  |  2765 views  |  3 comments | recomends Recommends 1 TagsRetail bankingInnovation

You can believe in unicorns, I’d rather plant seeds

09 November 2015  |  3080 views  |  2 comments | recomends Recommends 1 TagsInnovationStart ups

Elizabeth's profile

job title Global FinTech Commentator
location Crayford
member since 2009
Summary profile See full profile »
Global FinTech commentator. Author of the Girl, Disrupted blog

Elizabeth's expertise

Member since 2007
165 posts173 comments

Who's commenting on Elizabeth's posts