The legislative framework for retail payments in the European Union (EU) has seen important developments in recent months, such as the advancements in the negotiations for the revised Payments Services Directive (PSD2) and the finalisation of the EU Regulation on Interchange Fees (IFR). The European Commission, Council and Parliament are currently in the final negotiation stages of the PSD2 and once the Directive is agreed upon, the EBA will approach the industry and other interested parties to gather their input at an early stage of the regulatory development process.
The PSD2 mandates for the EBA are expected to include requirements to improve operational and security requirements for payment services. The EBA will develop this work in close cooperation with the European Central Bank (ECB), through the Forum for the Security of Retail Payments (SecuRe Pay) that the ECB and the EBA are chairing jointly.
As the security requirements under the PSD2 are not expected to come into force until 2018/9, the EBA had issued, on 18 December 2014, its final Guidelines on the security of internet payments. The requirements are a response to increases in fraud that regulators have observed with this particular payment method. The Guidelines represent the first output of the cooperation between the EBA and ECB on retail payments; have taken two years to develop; are applicable as of 1 August 2015; and will apply until the PSD2 requirements come into force in 2018/9.
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