Results of the National Forum on the Payment System meeting on the 16th of May 2018

Date 17 May 2018

Public information campaign on PSD2 to be launched at the end of this year

At the request of the National Forum on the Payment System (The Forum - NFPS) DNB is to launch a public information campaign in late 2018 to increase awareness among consumers and businesses about the imminent changes in the payment system as a result of the introduction of the revised Payment Services Directive (PSD2). The arrival of PSD2 will allow new and current market players the opportunity to introduce new services, which will give service providers access to consumers' payment accounts in order to generate payment transactions and/or offer account information services. This may only be done if the service provider has been licensed by DNB, and after the explicit consent of the account holder. DNB's research has revealed that 94% of consumers has not yet heard of PSD2 and that consumers are generally reluctant to give a third party access to their accounts. The campaign is aimed at raising awareness among consumers of the new payment possibilities that PSD2 offers, and of the fact that they are free to decide whether or not they want to use these possibilities. The Forum further decided that it would be good if banks were to provide consumers with an overview of the payment services providers to whom they have given their consent in mobile banking apps and online banking. The Forum will also devote attention to the risks for businesses when allowing access to their payment accounts.

On the road to a shared ATM network in the Netherlands

The meeting discussed the progress of Cash2020, the project launched by ABN AMRO, ING, Rabobank and Geldservice Nederland (GSN) to establish a shared network of ATMs and cash deposit machines. The general public will start noticing changes from early 2019 onwards. Behind the scenes, preparations are in full swing. When optimising the ATM network, explicit attention will be paid to safety aspects, availability (an ATM within 5 kms in rural areas), access to ATMs for vulnerable population groups and cash deposit options for businesses. Cash 2020 will be rolled out in stages between now and 2020.

Debit card only policy pursued by local councils

An increasing number of local councils are pursuing a debit card only policy. The Forum finds this undesirable as citizens are required to apply (and pay for) official documents like passports at their own local council and cannot go elsewhere. The national Ombudsman shares the Forum's view. This has prompted the chair of the Forum to send a letter to the Association for Netherlands Municipalities (Vereniging van Nederlandse Gemeenten - VNG) and the provincial authorities. The letter in turn prompted Parliamentary questions. A meeting will be organised shortly between the VNG and the different parties involved to discuss the matter and search for possible solutions. The Forum is in favour of pragmatic solutions that will allow consumers to keep paying in cash at every local council in the Netherlands. One of these may be to keep one desk where cash payments can be made.

New alias can improve the mobility in the payments market

The Forum finds that the adoption of aliases in payment transfers would make it easier for businesses and consumers to switch banks. This is why it examined which requirements aliases would have to meet. For the consumer market, user-friendliness is important and for the business market, aliases must be self-authenticating. A widely usable alias must be robust. The Forum's examination revealed that the current aliases that consumers use as an alternative in person-to-person transactions improve ease of use and speed, but are unsuitable to facilitate switching banks. The mobile phone numbers linked to the IBAN in payment apps are for instance unsuitable for payment transfers with businesses (among other things due to lack of phone number verification options). In order to really simplify switching banks, a new type of alias is necessary:a standardised, self-authenticating number, which is preferably assignable to both consumers and businesses, and that can be used throughout the euro area (SEPA). In view of the necessity to arrange this on a European scale, the Forum will share its findings with the European Commission to serve as input for the cost-benefit analysis of European number portability that the Commission is to perform in 2019.

Staying alert on the prevention of IBAN discrimination

IBAN discrimination refers to the phenomenon that businesses refuse to accept a customer's IBAN from another European country. This applies particularly to direct debit orders IBAN discrimination is prohibited. In May 2014, the Forum opened a registration centre for IBAN discrimination to handle relevant complaints. If you have a complaint about IBAN discrimination, please send us an email at adding a description of your complaint and a screenshot or picture. The registration centre has processed over 475 complaints since its launch.

NFPS Report for 2017 issued

The NFPS has presented its Report for 2017 to the Minister of Finance. This annual report provides an overview of payment system developments in the Netherlands and the NFPS's achievements in 2017. It also sets out the NFPS's priorities for 2018. The report is available on DNB's website.