EUROPEAN PAYMENT SERVICES DIRECTIVE 2 IN NORTH MACEDONIA: ARE WE READY TO COMPLY?

The Payment Services Directive 2 (PSD2) will have a profound and direct impact on the European banking industry. It is also widely accepted as a regulation producing ripple effects both in the banking and other sectors in and beyond Europe. Extending the first Payment Services Directive, PSD2 is intended to strengthen the security of online transactions, promote a more efficient and integrated payments market, protect customers, provide a level playing field between different payment service providers, and resolve all security gaps and risks that were not previously addressed. PSD2 creates space for innovative financial services, and by developing and advancing openness in banking, it calls into question the traditional banking models and imposes important operational and technological amendments to banks, their vendors, collaborates and the entire banking ecosystem mechanisms and function. PSD2 principles are also important for regulating the new Account Information Services (AIS) and Payment Initiation Services (PIS) along with the Third Party Providers (TPPs) - AISPs and PISPs. By properly synthesizing and analyzing the financial information from different banks and institutions, the former act as aggregators for the various customers. The latter, on the other hand, look to arrange and administer the financial transactions of their customers. Given the above considerations, this paper aims at answering three main questions about the PSD2. At first, we will take an in-depth look at the concepts and principal goals of the European Directive. Secondly, we will examine the implications of the EU regulation on the (1) legislative measures in the area of financial services and (2) day-to-day operations of both the central bank and commercial banks, or any other entity that may also be affected. Finally, this paper may serve as a guideline for the queries and dilemmas that managers in North Macedonia have about the PSD2, and may also assist by providing certain instructions and recommendations in managing change during the implementation process.