The new Payments Service Directive (PSD2) will go live on 13 January 2018. The new law will require banks to grant access to a consumer’s account to third party providers, who can initiate payments and source customer data in a regulated and secure way.
The research ‘Unaware, unprepared and paralysed: retailer readiness for PSD2’ is based on responses from over thirty tier one (turnover above GBP 500m) and tier two retailers (turnover between GBP 30-500m) in the UK.
The report’s findings highlight a lack of awareness on the merchants’ part regarding PSD2 as 48% are unaware of the payments directive and 32% do not know how it will affect their business. Furthermore, 67% of surveyed retailers are not ready to comply with the new regulations.
Only a minority (16%) view the new laws as a business opportunity, but this may be due to a lack of understanding. The research shows that once PSD2 is explained, merchants want to capitalise.
“There is clearly a knowledge vacuum within retailers around PSD2 and the retail technology solutions available that enable merchants to take advantage of the opportunities it offers,” said Daniel Lowther, Head of Fintech at CCgroup and co-author of the report. “There is a window of opportunity for retail technology vendors to help merchants react to PSD2, while helping themselves win new business. But this window will close fast and current levels of awareness suggest that communications and marketing efforts to date have not resonated with merchants. This needs rapid and urgent attention from CMOs at retail technology vendors.”
The research “Unaware, unprepared and paralysed: Retailer readiness for PSD2” is now available for download.
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