European authorities may have to take a more flexible approach to third-party account access from September, an MEP has told PaymentsCompliance, amid lingering concerns that banks’ unreadiness could cause emerging payment services to “crash”.
From September 14, EU-wide regulatory technical standards will change the way third-party providers (TPPs) can tap into customers’ accounts to initiate payments and aggregate data.
If a bank builds an application programming interface (API) that gains the approval of its national regulator, third parties are obliged to use that as the primary means of access. If an API is not approved, banks must let them use a modified version of the customer’s online or mobile banking login.
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