Expectations On PSD2 Interactions Between Banks And Fintechs Clarified By UK Treasury

ANALYSIS: How long financial technology (fintech) companies have been operating in the UK's payment services market will determine whether they have a choice over whether to temporarily opt out of new regulations that will apply from early next year, according to new plans published by the Treasury.

The plans concern the implementation of the EU's revised Payment Services Directive (PSD2) in the UK, through new Payment Services Regulations which have been laid before parliament.

The policy announcement, which follows an earlier consultation exercise, offers a degree of flexibility to some existing fintechs operating in the payment services market and clarifies what is expected of banks and other payment service providers (PSPs) in terms of enabling those fintechs to access customers' payment accounts or data.