Sophie in 't Veld: 'Privacy panic over PSD2 unnecessary'.

On 26 October 2017 Sophie in 't Veld wrote on her page a blog about the upcoming PSD2. She explains why people are wrongly concerned that PSD2 poses a threat to their privacy.

'Many people are very concerned about reports that a new European payment services law, "PSD2", is a threat to their privacy. The opposite is true.

To be clear: the only one who decides what may happen to your data may happen is you! With PSD2, your payments will be safer than at present. is the case.

What's up? In January 2018 the new European Payment Services Directive goes into effect. The Directive is known as PSD2 (Payments Services Directive 2). It is a modern version of an existing directive.

The current directive is no longer fit for the digital age. All kinds of new many new financial services have emerged in the last few years, especially digital ones. We all pay at some point with our mobile phone, or on the internet. It is nice and easy to do your shopping shopping in a webshop, buying your train ticket on your phone, Keeping track of your personal finances is super easy in an App. All these All these new services provide us with a lot of convenience. But the legislation to protect consumers lagged behind reality.

PSD2 better protects consumers in the digital age. For example, all All financial service providers will have to go through a tough licensing procedure, in order to prevent all sorts of cowboys from entering the market. PSD2 also has regulations for correcting payments and for protecting your privacy. protection of your privacy.

On top of that, the new European Privacy Act will also apply from 2018. That law is the strictest in the world and applies to everyone, both banks and FinTechs.

So where does the myth come from that your bank details will be out in the open because of PSD2?

That story has largely been brought into the world by the banks. Banks have had a monopoly for centuries, and they like to keep it that way. They see your personal information as their property. But the only one who your information is you.

Your data may not be viewed, processed or passed on to third parties against your will in any way whatsoever. viewed, processed or passed on to third parties against your will. Only you can give permission. If you decide to make use of, for example If you decide to make use of a payment app or an electronic household book, for example, only those data are used that are strictly necessary for carrying out the transactions. of the transactions. 

Just as with a payment that you make directly through your bank, a payment through another provider is also made via your bank account. In order to execute the payment order, a financial service provider must be able to "log in" to your be able to "log in" to your account, as it were. Until now, new new FinTechs have used methods that are not always secure, legal, and where privacy is at stake. For example, using your password. password. PSD2 puts a stop to that method. But At the same time, banks must offer an "interface" for a legitimate and legitimate and secure "login". 

This is what the banks have been fighting against for years, to thwart their competitors. their competitors. And now that PSD2 is about to be implemented, they're making one last attempt to scare customers with ghost stories about privacy disasters. to scare the customers.

For years I have been very committed to privacy (according to some even too fanatically). I also kept a close eye on the protection of privacy during the drafting of this law. I also kept a close eye on the protection of privacy when this law was drawn up.

PSD2 must now be converted into Dutch law. The Dutch government must ensure that this happens correctly. It is important that the Personal Data Authority is able to robustly monitor the implementation of PSD2.