New research: Technology vendors are failing retailers on PSD2

The Second Payment Services Directive (PSD2) is one of the most controversial and thus most talked about pieces of legislation in the history of payments and banking.

What is less discussed is that the financial services industry is just one side of the equation. The other is the retail sector which will now have access to customers’ bank accounts and corresponding data.

While the ramifications for the financial services industry are well known, there is very little insight into how retailers are addressing the regulation, what opportunities and threats it presents to them, as well as the wider retail technology community.

To address this industry knowledge gap, CCgroup today has published our report into the issue, in partnership with independent technical consultancy, Consult Hyperion. 

The report reveals that major tier one and tier two UK retailers are unaware, unprepared and paralysed ahead of the PSD2 coming into force on the 13th January 2018.

Our survey of decision makers at major retailers has revealed that barely half even know what PSD2 is, two thirds aren’t ready to comply, and a third are unware of the effect of the regulation on their business.

Key findings include:

• Only 16% are seeking to ‘take advantage’ of the new regulation
• 67% of retailers don’t think PSD2 will have much of an impact
• On average only a third of retailers can confirm they’ll take action

This lack of even basic knowledge around PSD2 regulation leaves many retailers with little hope of taking advantage of the opportunities open to them.

There is a window of opportunity for retail technology vendors to help merchants react to PSD2, while helping themselves win new business, but this window will close fast.

Download your copy of the report to learn more about the threats and opportunities PSD2 presents to merchant and retail technology vendors here.

CCgroup has reserved additional details and unique findings from this study for the exclusive use of existing clients. For more information about the study, and how retail technology vendors can raise awareness and educate around PSD2 please contact us via PSD2@ccgrouppr.com