Payment Services Directive 2 is a European directive that regulates payment services and payment service providers throughout the European Union (EU) by creating a more integrated payments market. The directive also promotes safer payments and consumer protection.
As part of PSD2, all payments services providers are required to provide application programming intefaces (APIs) that permit third parties to electronically access financial information in a secure and efficient manner and only with customer approval.
To ensure the above, SumUp has partnered with Token.io to handle the data exchange.
The regulation allows users to access their payments account information and initiate payments through authorised third-party payment service providers (TPPs). Users will be able to control this through a dedicated interface where they control the access levels, between the Account Information Servive (AIS) and Payment Initiation Services (PIS) options.
AIS pulls data from your bank accounts and accumilates their information in the same location, through a certified TPP.
PIS allows secure checkouts on any website that supports it.
Impact on SumUp Merchants
All SumUp merchants who have connected their SumUp Card to their SumUp Business Account will find additional controls for allowing TPPs to access their account information through a dedicated interface. The SumUp Business Account information and payment initiation through a TPP will be performed in a secure and safe manner, upon the explicit approval of the merchant.