Taking the strain of PSD2 off banks: equensWorldline bank clients successfully obtained exemption from the fall-back mechanism for XS2A dedicated interface

Following the PSD2 deadlines of 14 March and 14 September, several European banks based in the Netherlands, Belgium and France have already been granted an exemption from the fall-back mechanism upon evidence of their capability to provide access to their infrastructure to Third Party Providers (TPP). This exemption means that they have the required APIs ready in accordance with the Regulatory Technical Standards (RTS) prescribed by the European Banking Authority (EBA) and corresponding National Competent Authorities (NCA).

Ulrich S. Dietze, Country Manager Germany and Belgium, Credit Europe Bank N.V.: “Our close collaboration with equensWorldline has proved a significant move: Credit Europe Bank N.V. successfully applied for the exemption from the fall-back mechanism, thus avoiding a whole raft of operational and financial consequences. PSD2 is yet another reason for working with a payments technology partner that is shaping the implementation by actively participating in important European associations and working groups."

Full support for the requirements of PSD2

With PSD2, banks offering online access to their customers’ payment accounts are obliged to open access to their infrastructure to Third Party Providers (TPPs). In addition to providing a sandbox for their API service, PSD2 also requires banks to set up a contingency mechanism (or fall-back solution) in case the dedicated API service becomes unavailable, or is not working properly. Setting up this fall-back mechanism can be a serious challenge, given the required additional investments and resources.

This burden could be removed by obtaining an exemption. Banks can be granted an exemption from setting up a fall-back mechanism by the National Competent Authority if their dedicated interface (API) meets specific criteria, as stated in the PSD2 regulation. These criteria refer to factors such as robustness, availability, performance, security and detailed documentation. In addition, the dedicated interface also has to meet certain design and testing standards and must have been widely used for at least three months.

equensWorldline supports banks with this exemption request, as well as the creation of testing facilities or a ‘sandbox’ environment, and documentation on the API’s in a very short timeframe. The company also provides the end-to-end dedicated interfaces, including consent management and TPP verification which comply with PSD2 regulations and enable third-party providers to access customer account information in a correct, reliable and secure manner.

Within the new context, payment service users are protected by the Strong Customer Authentication (SCA) requirements and must give their permission before their details are submitted or a payment is processed. Furthermore, equensWorldline has strong PSD2 expertise with a presence in established European PSD2 groups and thorough regulatory control to ensure the product is always up to date. equensWorldline is currently working with several other European banks to support them in obtaining exemption from the fall-back mechanism, thus providing them with significant savings in resources and investment.   

Mark Hakkenberg, Board member and Chief Operating Officer, Banque de Neuflize OBC: “Due to our long-standing collaboration with equensWorldline we successfully implemented the PSD2 APIs and received the exemption from the fall-back mechanism. Being granted an exemption demonstrates the high level of quality and security of the solution provided by equensWorldline, which is a solid basis for innovation to explore further open banking capabilities.”

Michael Steinbach, CEO equensWorldline and managing director Financial Services at Worldline: “Ever since the introduction of PSD2, equensWorldline has been fully committed to develop a high quality PSD2 compliancy solution. The fact that several of our bank clients gained an exemption from the fall-back mechanism clearly demonstrates our capability to support and unburden banks in their PSD2-related challenges.”

About equensWorldline

equensWorldline is the pan-European leader in payments and transactional services. Being part of the Worldline Group, equensWorldline combines long-standing proven expertise in traditional mass payment systems (issuing, acquiring, intra- and interbank payment processing) and innovative e-commerce and mobile payment solutions. Building on more than 50 years of experience equensWorldline services a broad, international client base in numerous countries across Europe. Clients rely on equensWorldline’s expertise to anticipate European regulatory changes, benefit from transformative technologies, optimize processes, ensure operational excellence and manage risk and fraud. The company’s unparalleled footprint makes equensWorldline a cost-efficient and competitive business partner for seamless, secure and efficient payment solutions. equensworldline.com

About Worldline

Worldline [Euronext: WLN] is the European leader in the payment and transactional services industry. With innovation at the core of its DNA, Worldline’s core offerings include pan-European and domestic Commercial Acquiring for physical or online businesses, secured payment transaction processing for banks and financial institutions, as well as transactional services in e-Ticketing and for local and central public agencies. Thanks to a presence in 30+ countries, Worldline is the payment partner of choice for merchants, banks, public transport operators, government agencies and industrial companies, delivering cutting-edge digital services. Worldline’s activities are organized around three axes: Merchant Services, Financial Services including equensWorldline and Mobility & e-Transactional Services. Worldline employs circa 11,000 people worldwide, with 2018 pro forma revenues of 2.2 billion euros. worldline.com

Press contact equensWorldline

Marcel Woutersen
T: +31 (0)88 385 54 27, E: marcel.woutersen@equensworldline.com

Annemieke Lambregts
T: +31 (0)88 385 50 27, E: annemieke.lambregts@equensworldline.com

Jörg Richter
T: +49 (0)69 256 60362, E: joerg.richter@equensworldline.com

Elena Di Simone
T: +39 02 483 10 479, E: elena.disimone@equensworldline.com