EMPOWERING EUROPE’S DIGITAL ECONOMY

How is regulation impacting payments?

The digital economy is growing at seven times the rate of the rest of the economy. The Digital Agenda for Europe aims to help Europe's citizens and businesses to get the most out of digital technologies. It is the first of seven flagships initiatives under Europe 2020, the EU's strategy to deliver smart sustainable and inclusive growth.

MyBank aims to drive forward the growth of the Digital Agenda for Europe by providing secure identity protection and simple, trustworthy on-line and mobile payment solutions.

In December 2014, the payments industry saw three different regulators taking actions that prepare the way for a transformation in payments over 2015 and 2016.

 

How does MyBank support the Digital Economy?

MyBank allows secure payments, electronic mandates and trusted identity verification for on-line and mobile commerce

 

MyBank as a service infrastructure

Regulators want to ensure that payments remain a regulated activity, giving a safe and simple payment options to all society. The emerging regulatory requirements create a demand for a new type of “service infrastructure” between market participants. MyBank fills this role.

MyBank is the service infrastructure that provides:

MyBank Infrastructure

 

The need for a light, service infrastructure has been recognised by the EBA in their opinion paper published in December 2014.

 

MyBank as an API

Increasingly there is talk about the need for API’s that allow banks to provide services to their customer via Apps and other tools. The benefit of having a standardised payment layer built into customised apps by, for example, your supermarket, is a compelling way to balance standardisation, security and simplicity, with innovative and tailor made user experiences.

MyBank is an open API to the account, which allows merchants (via an appropriate payment service provider) to request a credit transfer, to confirm a mandate or to check an IBAN and to get a response. All this is provided via a proper security protocol, the explicit consent of the account holder, and the comfort of secure authentication.

 

MyBank and instant payments

The European Central Bank has called for instant payment to be made available by the industry in the short to medium term. MyBank already provides real-time information about the payment initiation of an irrevocable credit transfer giving the beneficiary (payee) certainty that funds will arrive the next day. In many cases, this is enough, but there may also be occasions where real-time funds are needed.

MyBank will support instant payments when available, providing both real time information AND real time funds availability between the payer and the payee