Demographic shifts, new technologies and evolving regulations are creating change and disruption for companies worldwide. Banks are helping clients embrace innovation and thrive in this dynamic environment. At this year’s Global Payments and Card Conference, innovation experts from Bank of America Merrill Lynch and across the payments industry held a panel discussion that explored ways to capitalize on these accelerating trends.
NEW REGULATIONS, NEW OPPORTUNITIES
New regulations can often spur innovation that creates benefits for clients. The latest example is PSD2, a new directive in the European Union. PSD2 requires banks to give access to payment account information to registered/authorized third-parties—including fintechs—offering payment services to consenting bank clients.
APIs—A NEW ERA OF “OPEN BANKING”
Banks have adhered to PSD2 obligations by using Application Programming Interfaces—or APIs—to provide access to client data, leading to a new era of “open banking” where clients are empowered to seek new services and efficiencies. APIs work “behind the scenes” to aggregate data from multiple sources in a single place, making it easier to analyze and helping clients pivot toward new opportunities.
THREE TYPES OF NEW SERVICES
PSD2 introduces three new types of authorized/registered payment institutions.
Account Information Service Provider (AISP)
AISPs provide consolidated information on one or more payment accounts held by the payment service user with either another payment service provider or with more than one payment service provider.
Card Based Payment Instrument Issuer (CBPII) (AISP)
A Card Based Payment Instrument Issuer is a payment services provider that issues card-based payment instruments that can be used to initiate a payment transaction from a payment account held with another payment service provider.
Payment Initiation Service Provider (PISP)
PISP is a service to initiate a payment order at the request of the payment service user with respect to a payment account held at another payment service provider.
THE NEXT WAVE OF E-COMMERCE
APIs will also enable new types of mobile commerce, led by the rise of a new type of “super-app” that can combine messaging, maps, mobility, shopping, dining and other services. BofAML is building APIs so that we will be able to connect clients—either through CashPro® or third-party apps—to this next wave of commerce that will be driven by digital wallets, sharing economies and new people globally.
Changes in consumer behavior are rapidly spreading into the corporate environment. Smartphone ubiquity has given rise to a global, mobile workforce that is used to using their personal mobile devices to conduct business. New card trends—such as mobile wallet—can help you make things simpler for these employees while boosting program administrators’ visibility and keeping your company’s data safe.
PUTTING THE BENEFITS IN YOUR HANDS
BofAML is investing heavily in new innovations to help you benefit from these changes.
Recently rolled out Apple Pay®, Google PayTM, Samsung Pay® in the United States
Available now in EMEA and APAC regions
Cardholder mobile website
Real-time functionality, including PIN management, mobile alerts, account suspension/reactivation
Prepaid card app
Instant account info, including balance, when money was loaded, mobile alerts, account suspension/reactivation
Virtual Payables and Travel
Tokenized, single-use account numbers for fast, secure vendor payments and centralized travel payments