Testing facilities for third-party providers required by March 14
HSBC has launched a portal for developers to test Application Programming Interfaces (APIs) – just one week ahead of a PSD2 deadline to do so.
The portal is a sandbox in which developers can test Account Information, Payment Initiation and Funds Confirmation, HSBC said today, using mock data from retail and corporate payment accounts in scope of PSD2.
“The portal [is] designed to allow third party payment providers to develop products and services for European consumers and businesses as required by the Second European Payment Services Directive” HSBC said.
PSD2 Deadline Looming: Here’s What’s Required
The launch of the portal comes a week ahead of a March 14 PSD2 deadline for Financial Institutions to make their API solutions available for external testing.
Account providers offering online services can enable account access either by using a dedicated interface built on an API or by adjusting their customer interface to comply with security, information, exchange and identification rules which are being introduced in September 2019.
The most immediate deadline is next week, however.
Here are this year’s deadlines, as emphasised by law firm Linklaters.
- By 14 March, all account providers with online payment accounts will need to have in place (i) the technical specifications of their access interfaces; and (ii) testing facilities for third-party providers.
- By 14 June, those seeking exemptions from the contingency mechanism requirement will need to have submitted their applications to the FCA.
- By 14 September, any contingency mechanism exemptions will need to be in place and all payment service providers will need to comply with the new strong customer authentication rules.
HSBC: “Keen to Work with Multiple Parties”
Nadya Hijazi, Global Head of Global Liquidity and Cash Management Digital, HSBC, said: “We are keen to work with multiple parties to develop and test their applications and customer propositions through easy and secure access to the wide range of simulated products and services on our PSD2 Developer Portal.”
“We look forward to working with third party payment providers across Europe to use HSBC’s services and bring new innovation to the market through an intuitive developer ecosystem.”
One senior industry figure who did not want to be named, told Computer Business Review: “While most of the bigger banks look on track to meet their deadlines, a lot of the smaller and private banks that are attached to investment banks do not.
“There are also a range of ongoing issues in the industry surrounding strong customer authentification standards. Rules were crafted with yesterday’s problems in mind but technology is moving so fast… An example includes how do you ensure strong customer authentifcation for payments made through voice-activated devices like Alexa. It’s an ongoing challenge…”
HSBC said the sandbox “provides developers with the choice of Open Banking Implementation Entity (OBIE) and STET standards, with work underway to include the Berlin Group standards… The launch of the PSD2 Developer Portal marks another step towards introducing more digital innovation and competition for payment services while ensuring high levels of security.”
The portal can be found at https://developer.hsbc.com