5th July, 2019
The development around sharing of banking (customer) data and make it available to non-bank third parties via APIs is being followed closely. As pointed by Edgar, Dunn & Company, one main aspect of EU’s landmark payments regulation, PSD2, is ‘access to accounts’ – this is effectively the ‘APIzation’ of bank accounts. Open APIs play a vital part at the heart of PSD2 compliance and open banking.
With open banking, a new financial services ecosystem is set to emerge. Even as issues related to data privacy and security are being raised and discussed, there is no doubt that merchants need to focus on opportunities from their customers’ perspective. Airlines need to make the most of the new regulation, which is resulting in opening up of the payments infrastructure and liberating customer data assets to offer consumers new options and services. “Open banking is one of the key regulatory changes, and it is going to impact the way merchants like airlines accept payments,” mentioned Pascal Burg, Director, Edgar, Dunn & Company (EDC).
Burg recommends that airlines need to “test and learn” about standards and infrastructure, and also application of the same from B2C and B2B perspective.
EDC suggests a three-phase approach for airlines to identify, evaluate and address payment opportunities and threats –
• 360° payments diagnostic/ audit
• Future state/ roadmap
• Roadmap execution - Interim payment team to support business to launch initiatives
By Ritesh Gupta
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