PSD2 PISP – Payment Initiation Service Provider
In order for a financial service provider to be fully authorised through PSD2 to use the Open Banking APIs they have to be registered as either one of or both of the following.
AISP – Stands for Account Information Service Provider
PISP – Stands for Payment Initiation Service Provider
What can PISP’s do?
Businesses that are authorised PISP’s can ask for permission to connect to a bank account and initiate payments on the customer’s behalf, from their bank account.
There are a number of reasons why you might want a business to be able to initiate payments for you, for example, an app that helps you manage money in your various savings and current accounts to ensure you never go over-drawn and don’t have to pay potentially hefty overdraft fees. It’s possible to expect this type of capability in retail, where you allow a company that you shop regularly online with to connect to your bank so you get instant checkout and don’t need to re-enter card details for every transaction.
Payments ECommerce reference application
TPP Payment initiation reference application
The web reference application shows how to build an end-to-end Payment initiation reference application with multiple types of services, combining a product catalog and a checkout page with a PSD2 payment initiation user journey to construct a complete solution.
The context of this sample is a web-based store with a customer order and payment initiation management back-end. Logical parts of the management back-end are represented by individual services, allowing loose coupling of functionality and independently-upgradeable components:
- Customer Order Service
- Inventory Service
- Web front-end Service
- ASPSP API aggregation
- Payment initiation
- Payment funds confirmation
- Payment submission
- Payment settlement
Using bankIO’s Link API aggregation, the frontend maintains a single connection to the aggregator, rather than relying on implementing an API integration for each ASPSP. This allows the frontend to scale independently using bankIO’s Link API aggregation to meet its unique requirements for data capacity and throughput.