In January 2018, PSD2 legislation came into effect to address multiple objectives: to enhance security, to stimulate competition in banking and together with the SEPA regulation, to unify the payments industry across the EU. After an expenditure of approximately £1.5 billion pounds by the nine major UK banks over three years, the industry is far from ready, both in terms of SCA implementation, and developer portals that offer usable APIs. Moreover, only a few major banks offer payment services based on PSD2.

So how can the slow start to the so-called ‘revolution’ in payments to be accelerated and truly benefit both industry players and consumers? In our report we share our view, along with the following insights:

• The timeline of PSD2 and how incumbent banks and card schemes have reacted to PSD2 so far
• Who is better positioned to exploit PSD2 opportunities – banks or software companies?
• Do banks need to rethink their business models?
• Are challenger banks really a competitor to incumbents?
• Does it make sense for a PISP/AISP to be a bank?
• The key points and gaps on RTS-SCA
• The difference between 3DS1 and 3DS2
• Our analysis on the latest EBA opinion
• What to expect next from PSD2 and the industry.