Consumers 'clueless' about new PSD2 payment rules

Do you know the effects PSD2 will have on you? If not – you’re far from being the only one. As a matter of fact, 89 per cent of consumers have no idea what will happen in six months’ time, when the Second Payment Services Directive, or PSD2, gets introduced.

The PSD2 is designed to increase market competition and improve customer experiences, Intelligent Environments says, adding that it will allow third parties to gain consent of consumers and access their financial data.

Polling consumers on how informed they are of the Directive, Intelligent Environments’ report says that two thirds (66 per cent) felt that the sharing of their data with a third-party would compromise online safety.

Also, two thirds (65 per cent) are “nervous that their accounts will be harder to manage when spread across multiple providers”.

Seven in ten are worried about the lack of clarity regarding where their data is and who owns it, and almost three quarters (72 per cent) worry they’ll be ‘bombarded by unwelcome advertising’.

However, there are positives. A fifth (21 per cent) are happy to be able to manage multiple bank accounts from a single app. One in ten (11 per cent) would be happy to get objective, third-party advice on how to manage their finance. A fifth (21 per cent) think it will be more convenient to manage their money.

“Despite financial institutions’ best intentions, there is still a lot of uncertainty and doubt around the introduction of PSD2, with consumers either unaware, or actively afraid of the new rules,” commented Jerry Mulle, sales and marketing director at Intelligent Environments.

“Despite these worries, the reality couldn’t be more different: PSD2 has been created with the consumer in mind, and is set to revolutionise the financial services industry, helping provide users with the option to better manage their finances while avoiding debt.

“Of course, security is of utmost importance and while increased data sharing may set off some alarm bells PSD2 has many in-built safety functions to ensure confidential information stays safe. Crucially, consumers have to ‘opt-in’ to allow third parties access to their data, ensuring that no one sees financial details without their permission, unless you want them to.

“For financial services organisations, the findings speak clearly: more must be done to educate consumers on the impending legislation, assuaging their concerns and making clear the industry-changing benefits that are still to come.”

Image Credit: Centtrip