Account information service (AIS) and payment initiation service (PIS)

Under PSD2 an ‘account information service’ is an online service which provides consolidated information on payment accounts held by a payment service user with payment service providers. These services already exist in the UK, however, PSD2 will bring them within the scope of regulation. This will ensure that account information service providers (AISPs) can receive access to payment accounts, whilst also placing requirements on them to ensure security for users.

Under PSD2, a ‘payment initiation service’ is an online service which accesses a user’s payment account to initiate the transfer of funds on their behalf with the user’s consent and authentication. Payment initiation services provide an alternative to paying online using a credit card or debit card. These services are not widely used for online payments in the UK, but are used in other European countries. The new rules will bring payment initiation services within the scope of regulation. This will ensure that payment initiation service providers (PISPs) receive access to payment accounts, whilst also placing requirements on them to ensure security for users.

If you have any questions, you can contact us.

Answer the following questions to understand more about what you need to do to meet new PSD2 requirements:

Have you been undertaking these activities since before 12 January 2016?

1. You should consider whether transitional provisions for certain businesses providing AIS or PIS may apply to you – see Chapter 3 in our Approach Document. If they do, you may be able to continue to provide these services without authorisation until the date which is 18 months after the European Banking Authority (EBA) Regulatory Technical Standards on strong customer authentication and secure communication under PSD2 come into force. However, during this time you will not benefit from the rights of access set out in PSD2.

2. If the transitional provisions do not apply to you then you will need to apply to become an authorised payment institution (authorised PI). Applications can be made from 13 October 2017, and you must be registered to carry out business from 13 January 2018. You can find further information on our Authorisation pages.

3. Once you are authorised you will need to comply with a number of requirements. Chapter 17 in our Approach Document is relevant to providers of AIS and PIS.

1. You will need to apply to become an authorised payment institution (authorised PI) from 13 October 2017 and must be authorised by 13 January 2018. Please see our Authorisation pages.

2. There are requirements that you will need to follow once authorised. Please see our Approach Document for guidance on these requirements.

Do you intend to undertake AIS or PIS activities in another European Economic Area (EEA) country (or use an agent with activities abroad)?

1. You will need to be appropriately authorised in order to passport these activities.

2. The PSD2 passporting gateway will open on 13 December 2017. Notifications can be made via Connect from 2 January 2018.

3. PSD2 introduces important changes to the passporting process and to the procedure to appoint agents. These changes are set out in full in the PSRs 2017 and described in our Approach Document. Importantly, it may take firms up to three months from the date they submit their initial notification, before they can start passporting (including through an agent) (Chapter 6 in our Approach Document).

4. If you are unsure about the territories in which you will be considered to be providing AIS or PIS, you should seek your own legal advice.

1. You should note that if you do passport, PSD2 introduces important changes to the passporting process and to the procedure to appoint agents. The new process is set out in full in the PSRs 2017 and we have provided guidance in our Approach Document. Importantly, it may now take firms up to three months from the date they submit a complete notification of their intention to provide services in another EEA country, before they can start passporting (including through an agent).

2. If you are unsure about the territories in which you will be considered to be providing AIS or PIS, you should seek your own legal advice.