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What is ‘PSD2’?

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Published: 18/12/2019 | Update: 28/08/2020

What is ‘PSD2’?

‘Payment Services Directive 2’ is the new version of the European PSD Directive adopted in 2007 to regulate payment services and payment service providers within the EU. A major difference between PSD2 and PSD1 is that account holders within the European Union now have the possibility to give service providers, other than their own bank, access to their payment accounts. The directive ensures that it is no longer your bank, but you who owns your payment details. In this way you can - as long as you explicitly give permission - share your payment details with other parties, such as Dyme.

Many people experience a lack of financial overview

Due to ‘new’ ways of making purchases, such as online shopping and the boom in subscription services such as Netflix, Spotify and Swapfiets, Dutch people have less and less control over their spending. The average Dutch person has about 5 to 15 subscriptions and there’s even a big group that has more than 20 subscriptions.

This makes it easy to lose track. Ninety percent of Dutch people underestimate how many subscriptions they pay for each month. Most people think they only have a few,which is not true unfortunately. Young people under 25 are least aware of the amount of subscriptions they have: they have an average of sixteen subscriptions.

People don’t know what their money is going to and the bank statements aren’t much help. Furthermore, the banking apps do not meet the consumers wishes to create a clear overview of all their expenses in this financially complex environment of subscriptions, memberships, and online purchases.

PSD2 license

Is it really safe for third parties to gain insight into your bank data?

There are four regulatory authorities in the Netherlands that ensure that all third parties handle your data safely and correctly. The audit is carried out by the Netherlands Authority for the Financial Markets, the Netherlands Authority for Consumer Affairs and Markets, the Netherlands Authority for the Protection of Personal Data, and the Dutch Central Bank.

A company first needs to apply for a permit to access your bank details. In order to obtain this permit, the company must adhere to strict requirements regarding privacy, data security, and communication.

When does PSD2 go into effect?

The PSD2 officially went into effect on 19 of February 2019 in the Netherlands. The operational implementation of the legislation started on 14 September 2019.

Can Dyme see my bank details?

Dyme uses the new PSD2 directive to get reading rights of its users’ bank accounts, as long as permission has been given for this. With Dyme’s smart algorithm, the app recognises all the monthly fixed expenses, such as energy contracts and other current subscriptions.

The bank link is only possible if the user has explicitly given permission to do so. After the initial permission, Dyme is obligated to ask the user for permission every 90 days. You are also able to revoke your permission at any moment.

Dyme’s bank link now works with ING, ABN AMRO, Rabobank and bunq. The remaining Dutch banks will soon be added.

Have you heard about our app? The Dyme app gives you a complete overview of your finances, so you are always in control of your money. Our smart technology generates overviews of your income and expenses automatically, so you do not have to waste your time doing it manually. We will also help you save money. The average Dyme user currently saves €720 per year on his/her recurring expenses! Want to know how much you could save?