Use Payment Initiation Services for new forms of online payment
Payment Initiation Services (PIS) are a key part of open banking and PSD2. PSD2 is the EU’s revised Payments Services Directive. It says that banks must allow regulated and licensed PISPs to initiate payments with the account holders'specific consent and confirmation. In addition, PSD2 sets clear rules for these PISPs to ensure the security of the account holders. PIS is therefore a good alternative to paying online with a credit or debit card or by credit transfer.
The PISP uses APIs of the account holding bank to start payments from a certain bank account. Firstly, it triggers a payment initiation process flow from within its own environment. Then the process takes the customer to the trusted KBC environment. There the user can confirm and sign the payment. The rest of the payment flow then takes place back in the developer’s environment. The overall result is a great payment experience for the customer.
Who can use Payment Initiation Services?
The users of PIS APIs are developersof:
How does this solution work?
Overall, the first step is the registration process of the PISP with KBC. This step gives access to the PIS APIs.
Firstly, the user states in the environment of the PISP that he or she wants to make a payment.
The PISP gathers all necessary data for the payment.
Then, the PISP calls the KBC PIS API with this data.
The user goes to the KBC environment. There the user can see the payment details and subsequently signs the payment.
After that, the user is redirected to the PISP.
Finally, the system tells the PISP whether the payment initiation was successful or not.
It must be remembered that developers have to gain accreditation as third-party providers from the National Bank of Belgium. They also need to have a valid eIDAS certificate under PSD2, or prove that they have applied for one.
The payment initiation flow always includes a specific confirmation by the end customer in the KBC environment.