EU payment harmonisation no reality
(25 March 2010 – Global) Despite the Payment Services Directive (PSD) becoming law in November 2009 and the launch of the single euro payments area (SEPA) direct debit scheme at the same time, a Payments Survey conducted by Travelex has revealed that 45 percent of respondents do not believe that harmonisation of European payments is in fact a reality, gtnews reported.
Of the 226 banking and finance decision makers polled, 51 percent thought that the PSD would create greater value for business, while 49 percent disagreed.
The Payment Services Directive is a regulatory initiative from the European Commission, designed to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA).
Its purpose is to increase pan-European competition and participation in the payments industry (also from non banks), as well as to provide for a level playing field by harmonising consumer protection and the rights and obligations for payment providers and users.
49 percent respondents also said that they felt that the PSD was at least likely to facilitate growth of payment institutions in Europe, while 35 percent stated it was unlikely to.
Three out of ten surveyed said they believe that harmonisation of European payments is a reality; while 26 percent said they were unsure.
David Sear, divisional manager for Travelex Global Business Payments, said, in an interview with gtnews, that it is amazing that 30 percent actually think harmonisation is a reality.
Mr Sear added that the level of respondents believing in the possibility showed that they have not recently made a payment.
The simple fact is payment services haven't really moved on. Although there has been some progress made in the basic services under SEPA, there isn't a great deal of consumer awareness and, to be honest, I am not sure that there is consumer or business relevance being attached to it, Mr Sear told gtnews.
Despite many banks saying they are returning to core banking, it is surprising that such a high percentage of respondents are not investing in payment technology, said Mr Sear noted.
With the PSD comes a regulatory environment which encourages new entrants and yet banks are not willing or able to invest. There are technology companies and payment institutions that are innovating in this space, and there is a gap created by the larger banks' inability to invest in this kind of technology and capability, Mr Sear highlighted.
The Payment Services Directive is a regulatory initiative from the European Commission, designed to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA).
Its purpose is to increase pan-European competition and participation in the payments industry (also from non banks), as well as to provide for a level playing field by harmonising consumer protection and the rights and obligations for payment providers and users.
49 percent respondents also said that they felt that the PSD was at least likely to facilitate growth of payment institutions in Europe, while 35 percent stated it was unlikely to.
Three out of ten surveyed said they believe that harmonisation of European payments is a reality; while 26 percent said they were unsure.
David Sear, divisional manager for Travelex Global Business Payments, said, in an interview with gtnews, that it is amazing that 30 percent actually think harmonisation is a reality.
Mr Sear added that the level of respondents believing in the possibility showed that they have not recently made a payment.
The simple fact is payment services haven't really moved on. Although there has been some progress made in the basic services under SEPA, there isn't a great deal of consumer awareness and, to be honest, I am not sure that there is consumer or business relevance being attached to it, Mr Sear told gtnews.
Despite many banks saying they are returning to core banking, it is surprising that such a high percentage of respondents are not investing in payment technology, said Mr Sear noted.
With the PSD comes a regulatory environment which encourages new entrants and yet banks are not willing or able to invest. There are technology companies and payment institutions that are innovating in this space, and there is a gap created by the larger banks' inability to invest in this kind of technology and capability, Mr Sear highlighted.
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