Europe's major banks will spend up to EUR6 billion over the next 18 months in preparing for the Payment Services Directive, according to a survey conducted by consultancy Payment Systems Europe.
The study was conducted among a relatively small sample of 30 major banks and 'payment sector specialists' from across Europe. It found that over 40% of banks surveyed believe implementing the PSD will cost them more than €10m and almost a quarter believe it will cost over €50m. Significantly nearly 60% of those surveyed do not believe the PSD will deliver competitive benefits.
The PSD is intended to harmonise the legal framework for payments across Europe and is slated for introduction in November 2009. The Directive sets stringent rules for information disclosure, conduct of business rules and service provision between banks and their customers, and contains provisions for non-banks to handle payments and join the bankers' payment schemes and associations. Eighty per cent of those quizzed by PSE believe that these news 'Payments Institutions' will have a noticeable impact on the structure of the EU payments industry.
While the majority of larger institutions expect to be ready by the 1 November 2009, deadline, substantial concerns were raised by those surveyed over the readiness of smaller banks.