De Nederlandsche Bank (DNB) has surveyed consumers' willingness to share their payment data with third parties: only 11% of those surveyed are willing to grant access. The research also shows that consumers trust banks more than tech companies. The Financieel Dagblad also concludes this. This is interesting because PSD2 (the new European payments directive) and tech security regulations should actually encourage innovation in the payments market.
author: Kuijpers, Margot
Careful handling of data, according to research by DNB, is the main reason for consumers to trust banks more than tech companies. This just goes to show how aware consumers are gradually becoming regarding their sensitive data, such as payment information.
In our experience, the average consumer has little knowledge about what it means to be a payment service provider under PSD2. That could be one explanation for the survey's outcome. Consumers quickly think of tech companies as big tech that are not always positive in the news about protecting consumers' sensitive data. What may be less known to the general public is that most payment service providers, including big tech and the fintechs, require a license to provide payment services. Moreover, account information service providers always need explicit consent from consumers before they can access payment data at all.
A company does not get a license to provide account information services or other payment services just like that. To do so, its business operations, technical integration with the bank and communication with consumers must demonstrably comply with a variety of procedural and technical security requirements. Since payment data is also generally personal data, payment service providers must also act in accordance with the General Data Protection Regulation (GDPR). Moreover, payment service providers are supervised by the DNB, the Financial Markets Authority, the Consumer & Market Authority and/or the Personal Data Authority.
It is therefore important for tech companies that want to provide payment services to ensure that they gain the trust of consumers. They must inform consumers in a transparent and understandable way about what it means to be an account information service provider; licensed as a third party provider.
We advise payment service providers on the legal aspects of how to gain consumers' trust: clear communication, transparent and understandable terms and conditions, and pragmatic advice.
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This article can also be found in the PSD2 dossier
