I’m taking the red pill
Well, now 13 January has come and gone. The date that would change the payments landscape beyond recognition. The date some of us have spent more time thinking about than the millennium shift. And what happened?
The PSD2 was supposed to be transposed into national law by 13th of January 2018. But all over Europe, and not least here in the Nordics, we have a very differentiated implementation.
Denmark started off even earlier, by introducing their changes already the 1st of January. And Finland did exactly what they were told and kicked off on date. But Sweden is running late, aiming for the 1st of May, and the Norwegians have still not made up their minds.
So, Finland and Denmark and several of the other European countries are now live. Happy PSD2 to you! But what has actually changed? Well, I think it’s exactly like the millennium shift. We expected a magical date when toasters would stop working and when all computers would go crazy. A date when new birth dates suddenly would make babies 100 years old in our systems. But nothing dramatically actually happened. And this is truth of reality, nothing happens “just because”.
And as all of us PSD2 nerds know, we are still waiting for the RTS on SCA to apply. Another magical date. Another millennium shift?
Acronyms and a lot of fancy buzz words, but what’s in it for me?
The last two years I’ve read tons of articles and blog posts praising the acronyms. TPPs will challenge the incumbent ASPSPs. APIs will solve all our issues. eIDAS, QTSP, OAuth2, PIISP, JSON, ERPB, MSCA; it’s a never-ending story.
But what about the PSU? The most important acronym of them all. The Payment Service User. People like you and me.
Having worked in the financial industry for many years, I’ve seen my share of infrastructure changes, new regulations and technology innovation. And in the eye of the storm it might seem like it’s all about technology, but when the wind settles it always comes down to the services.
Acronyms are so 2017.
Now it’s time to spend more time talking about the customers, the services and about experiences, values and benefits.
I’m waiting with bated breath for everyone to start sharing news and insights on all the new amazing services, for me as a consumer but also for the corporates. This is what the PSD2 is really all about.
The services, it’s all about the services
The services of payment initiation and account information have been in the Nordic market for many years. I am using budget apps, savings apps and many of the apps with awesome overviews of different comparisons for prices, interest rates and other. Almost always I scan the market by using an app running prices, to make sure I get the best prices when shopping online. And it goes without saying; I have several sweet options when making the payment.
How data is now being shared has changed my life.
I love music. I grew up with cassette tapes. Eventually I had to get a CD player. And for many years now I am the biggest fan of Spotify. Every time I log on I am greeted by a new personalised playlist that Spotify has created based on my preferences.
It’s not the margins that drives the Googles and the Facebooks but the payment data. It best predicts what I want to shop tomorrow. Data is really important in the innovation space. And banks need to step up a bit, and start making use of all the data that they have. As an end user, I honestly don’t care how it’s done, I just want it easy to use, cheap and secure.
So, come on banks, Fintechs and service providers of all kinds, with all your muscles and all the power you have, I urge you to take the red pill and offer me something with a heart.
Just like Morpheus put it “I’m trying to free your mind, Neo. But I can only show you the door. You’re the one that has to walk through it”
I’m very much looking forward to the years to come, when the PSD2 and the RTS is fully implemented in all countries, and all banks have opened up in an easy, accessible and standardised way. When all the pieces of this giant puzzle are in place. And when all new services have been launched. Because it’s at that moment we have reached the true playing field.
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The red pill (and its opposite the blue pill) is a reference from the movie The Matrix.
The red pill gives you knowledge and the (sometimes painful) truth of reality, whereas the blue pill is about falsehood and the blissful ignorance of illusion
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About the author
I am a Senior Business Developer working in Nordea Open Banking. I started working with APIs years ago (but back then we called it something else). I am living in the internet society and I am a big user of services that makes my everyday life easier. 24/7 is my motto, as I am the customer that never sleeps.
