The new draft payment services fosters innovation

 The Ministry of Finance gave the first approval a draft of which will be Estonia's laws into line with the new EU Payment Services Directive.

"The bill is designed to equalize market players entering the market and the operating conditions to facilitate access of new payment services market expansion of fair competition and to ensure the transparency of services to users of payment services, security and protection of their rights," said Finance Minister Sven Sester .

The traditional payment services are generated by innovative payment services. E-commerce customers and merchants is initiating a new payment service, offering even wider opportunities to pay for items. Account information services, however, will allow customers to get one inquiry aggregated on their financial situation. These innovative services in the market is considered to be an important competitive force in the service price and convenience.

Customer identification is proved to be a serious challenge that faces the Internet and through mobile payment transactions, and various studies have shown that the risk of fraud and theft of confidential information falling victim to the year-on-year increase. Payment services related to the use of security risk aspect is considered serious, innovative payment services and payment services market factor hindering the development. Also, the new Payment Services Directive is one of the objectives is to minimize the security risks associated with electronic payments.

Estonia considers the new EU Payment Services Directive should be transposed by 13 January 2018. It arises banks and other payment service providers to transfer the exercise of the obligation to require Internet customers strong authentication. Today, the cards use the password does not meet the requirements for strong authentication and are considered unsafe because the codes can be easily copied. We emphasize, however, that customers can securely authenticate themselves today means used, eg koodikalkulaatorid, ID cards and mobile ID.

The exact time depends on the requirements for entry into force of the implementing legislation development at EU level. According to preliminary plans restricting the use of password cards very extensively since the second half of 2018.

The Ministry of Finance expects a draft of the proposals in the first half of March.

The Act is planned to take effect on 13 January 2018.

The reference to the EU Directive on payment services .

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