Selected Topics

Payment Innovation, Paytech and Open Banking

The payments landscape is constantly evolving for both business-to-business and business-to-consumer transactions. Technology is causing profound changes to payments, resulting in the increasing use of digital payment models as a means of gaining efficiency and significant costs’ reduction. Innovative, new, and efficient digital payment systems match the rising customer expectations, can offer competitive advantage over manual and slow payment models, and can increase internal payment management and flow. Emerging technologies promise even greater and exponential growth in payments, rendering PayTech an extremely fast-developing area.

Open banking, as introduced in the EU through the Payment Services Directive 2015/2366 (PSD II), substantiates much of the PayTech promise. PSD II requires commercial banks to provide authorised Third Party Providers (TPPs) open access to bank-clients’ data through open APIs, to build applications and services on financial services and payments. A regulated service under PSD II which is pertinent to the PayTech industry is the Payment Initiation Service. The directive regulates Payment Initiation Service Providers aiming to open payment services to other market players with the ultimate objective of enhancing innovative payment solutions. Open banking is set to transform payments, not least due to the significant opportunities brough about by the sharing of data to application developers; new, efficient, and digital payment models are bound to emerge out of the open banking capabilities.

Through PSD II introducing and setting the legal foundations for open banking, regulators acknowledge the strong and dynamic prospect of PayTech. Our lawtech firm shares the sentiment for the immense PayTech promise and thanks to our expertise, and our unique law and technology practice can accommodate the most innovative PayTech solutions, relying on novel business models and open banking. We offer creative and comprehensive solutions for businesses operating in the PayTech and open banking sphere and businesses wishing to integrate innovative payment solutions to improve their internal payment processes.

Our customers may rely on our technologically savvy practice and our acute business awareness to guide them through the legal and regulatory demands of open banking integration, use, and development and their PayTech solutions. As experts in digital transformation, we make sure to deliver services that are conducive to the vision of seamlessly moving towards data-driven efficiency, innovation, and digitalization.