New EU regulatory upheavals are going to make the real revolution in eCommerce. Actually, 2018 brings uncertainty: while GDPR strives to protect the personal information of the EU residents more profoundly, PSD2 seems to follow opposite principles. So, what is the point of these two documents? Let’s find out the difference in the article.
General Data Protection Regulation: what for?
The GDPR is aimed at:
- protection of information of people living in EU countries;
- simplification of international business by harmonizing with EU legislation;
- providing clients with quality services;
- guaranteeing better transparency;
According to the regulation, clients have the right to demand enterprises to delete their information and/or transferring the data to another company or organization.
PSD2: the era of open banking is coming
The target of the second Payment Services Directive:
- Create equal market conditions for traditional financial companies and new ones that have emerged as a result of digitalization.
- Access to customer accounts for third-party companies.
Therefore, PSD2 shares clients data in order to help promote better tech-based products and services.
PSD2: Is it safe?
Payment service providers will be obliged to inform clients about transactions in all currencies. In addition, PSD2 guarantees greater protection in disputed situations for customers.
The second Payment Services Directive will go into force in 2019.
GDPR vs PSD2: disharmony
Nevertheless, the principles of the second Payment Services Directive seem to have a discrepancy with GDPR. In fact, PSD2 allows payment service providers to access payment information of a customer that the GDPR intends to protect. So, it is absolutely unknown how PSD2 will work at the GDPR background. There are only several predictions about challenging contradiction.