Consumer propensity to adopt PSD2 services: trust for sale?

We study consumers attitudes towards sharing payments data with incumbent and new providers of payment and account information services, and using their services. This is important, in order to understand the possible impact of the revised Payment Services Directive (PSD2) on the functioning of the retail payments market. We do so using a representative panel of Dutch consumers. We obtain a number of results. First, consumers propensity to give consent for payments data usage is highest if the data user is their own bank. Only a minority would give consent to the usage of payments data to make a financial overview with personalised offers. Second, an explicit financial reward can tempt more people to use this service and to demand the service from a BigTech instead of ones own bank. Third, support for the usage of payments data by other banks and BigTechs to decide on loans is also positively related to financial incentives. Finally, the propensity to use the two new PSD2 services is driven by consumers trust in the providers of these services. Consumers have more trust in their own bank than in BigTechs.

Keywords: consumers; discrete choice models; PSD2; retail payments; trust, pricing
JEL codes C25; D12; E42; G21; G24; G28

Working paper no. 671