Harmonisation of EU payment transactions: “With finAPI, banks are already PSD3-ready”

With PSD3, FIDA and PSR, new regulations are in the starting blocks that will further tighten regulation in European payment transactions. We interviewed Peter Hiekmann, VP Sales at leading banking API provider finAPI, about current developments in open finance.

Peter, the EU is currently working on PSD3. What are the main changes?

Compared to PSD2, the new regulation eliminates a few teething problems and also introduces some new features. The main objectives of PSD3 are combating payment fraud, strengthening consumer rights and improving the availability of cash. In addition, there are readjustments that are intended to strengthen open banking, create an actual level playing field between banks and third-party providers and achieve harmonisation among the EU member states.

In addition to PSD3, banks are facing further regulations in form of PSR and FIDA. What does this mean for them?

It is important for banks to prepare now for the upcoming regulatory requirements. This primarily concerns the PSD2/PSD3-compliant XS2A interface, via which regulated third-party providers (TPPs) can access account information and initiate payments.


What makes a good XS2A interface?

We have been offering the PSD2-compliant XS2A interface since PSD2 came into force in 2019. We are convinced that an interface must first and foremost be PSD2-compliant, map a broad standard such as the Berlin Group Standard and be stable, scalable, easy to integrate and future-proof. This is exactly what we cover with our XS2A server, which we make available to banks, credit card providers and financial institutions.

Keyword future-proof – how do you ensure this?

It is crucial to be close to the political decision-making processes. As a founding member of the Open Finance Association (OFA), we worked with other members on the statements on the draft PSD3 and PSR, for example. We are closely monitoring developments in PSD3, PSR and FIDA and have designed our XS2A server in such a way that it can be easily expanded to support new regulatory requirements – so we would say we are already PSD3-ready.

Banks have also provided the XS2A interfaces for the TPP themselves. What are the advantages of outsourcing this service?

We are a TPP ourselves and therefore know both sides. In addition to our extensive experience, our XS2A server is fail-safe, scalable, and suitable for both small and large institutions. Even a high number of queries are no problem. This outsourcing reduces costs, increases the quality of service and frees up internal resources. On the other hand, we also know exactly what regulated third-party providers expect from an interface.


Isn't the integration of an external XS2A interface complex?

As we all know, the banks’ IT roadmaps are full. That’s why we offer extremely low-threshold integration. The institution only needs to map its core banking data with our server, which can be done within a few weeks. finAPI provides everything required for this within 24 hours. In addition, we provide comprehensive documentation and ad-hoc support for the implementation and also support TPP in using the banking interface if required.

What exactly do you mean by reducing complexity?

Our XS2A server acts like a smart gatekeeper – it takes care of all process-related tasks for the bank. For example, consent and TPP management is no longer necessary for the bank. Whether a TPP is authorised to access or not, for example, is checked by finAPI in advance and only successful requests are forwarded. This means that the core banking system always remains under the control of the bank. In addition, no time-consuming specifications are required for data exchange and access – finAPI takes care of that too.

Would you like to know more?

Contact us for more information on the XS2A interface and the XS2A server for banks. We will be happy to advise you.


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