The floodgate to financial services and tools has just opened in the European Union. A new directive is expected to make waves across all sectors, including the vacation rental industry.
The Payment Services Directive (PSD2) - administered by the European Commission - requires that banks give third-party providers access to customer account data (when customer permission is given). This means bank customers - including businesses - can use outside services for functions ranging from data insights to peer-to-peer payments. The directive aims to increase competition, innovation, transparency and security across the financial market.
What does the future look like?
PSD2 ends bank monopolization on customer data. Banks, now exposed to external technologies, will no longer be the face of every transaction. In theory, retail giants like Amazon or Walmart could directly access bank accounts and perform payment activities. Such fluidity is expected to lead to innovative financial applications.
Further, third-party providers can now aggregate data from multiple banking sources for analyses. This means financial management services like Mint, popular in the United States, are likely to begin catering to EU audiences.
The possibilities are virtually limitless, given the newfound data accessibility granted to corporations and financial technology companies. Additionally, the financial landscape's overall security should improve, as third parties will be expected to protect consumer data and proactively address cyber threats.
What does PSD2 mean for the vacation rental industry?
PSD2 equates to opportunity for property management companies. Within the short-term rental industry, innovative and secure technologies are already emerging in response to the directive.
Designed with PSD2 in mind, the new KigoPay platform offers a secure and seamless payment solution for managers of short-term rentals. KigoPay simplifies the transaction experience by offering state-of-the-art payments and real-time guest screening technology.
KigoPay also processes multi-currency transactions quickly and safely from one centralized location, making it easier to monitor the flow of funds from various countries.
To learn more about KigoPay, schedule a free demo today!