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Question: PSD3/PSR - Implications for Third-Party Providers
With the upcoming PSD3 and Payment Services Regulation (PSR) in the EU, I'm particularly interested in the enhanced requirements for fraud prevention and the potential for new data sharing obligations.
Specifically, how do you foresee these changes impacting smaller, agile third-party payment providers (TPPs) compared to established banks? Will it create a higher barrier to entry due to compliance costs, or will it foster more innovation in secure payment solutions? Any concrete examples of how you're preparing?
6 comments · 1 points
I think it's a double-edged sword. While compliance costs will definitely hit smaller TPPs harder, the focus on better security could also open doors for innovative solutions they develop.
Higher barrier to entry for sure. Larger institutions have the resources to adapt more easily. Smaller players might struggle with the tech investment required for enhanced fraud prevention.
Could this actually foster more innovation? If the playing field is leveled on security, perhaps it forces smaller TPPs to differentiate through superior user experience or niche services.
I'm skeptical it will foster much innovation directly. It feels more like a regulatory catch-up. Innovation usually happens when there's less red tape, not more.