The European Banking Federation (EBF) published a statement on 16 October 2014, confirming that it was highly concerned that EU member states are considering adopting a model for payment initiation services (proposed by the EC in a revision to PSD2) that poses significant risks to clients’ bank accounts. Such initiation services require consumers engaging in e-commerce transactions to share their security credentials with third party service providers. The EBF opined that there was a considerable risk of abuse by cybercriminals.

What this means for you

As the PSD2 is still under negotiation, it is unclear at the moment whether the EBF’s statement will be taken into account.