Pre-requisites

Introduction to PSD2 Payment Initiation

The Berlin Group NextGenPSD2 is one of the standards that supports the TPP APIs as mandated by the PSD2. Within the XS2A (Access to Account) interface, a sequence of payment endpoints are exchanged between the Third-Party Provider (TPP) and the Account Servicing Payment Service Provider (ASPSP). Every payment endpoint consists of a request and a response. The payload data of the Payment Initiation Request consists of all payment-related data of the payment initiation. This data varies for different payment products. The following payment products are supported :

• SEPA-credit-transfers
• Instant-SEPA-credit-transfers
• Target-2-payments
• Cross-border-credit-transfers

The PSD2 Payment Initiation module (PX) assists banks with Payment Initiation APIs to support the following:

• Berlin Group (v1.3.4)
• Temenos First-Generation APIs

Illustrating Model Parameters

The high-level configurations available in the Model Bank are given below:

Parameter	Description
PX.PARAMETER	Used to select the ‘Category’ codes for accounts that are considered as applicable for PSD2. The Permissions.Check field manages the ‘channels permissions’ validations. The AVAIL.AA.PROD.MODE field defines the rules for fields DEFAULT and SPECIFIC. These in-turn defines the list of products that are considered to be available for PSD2. The AVAIL.AA.PROD.GRP field defines the Product Group to be considered as available under PSD2. Allows valid AA.PRODUCT.GROUP from the ACCOUNT Product Line. The AVAIL.AA.PROD.ECXPT field allows valid AA.PRODUCT from the ACCOUNT Product Line (and applicable to the AA.PRODUCT.GROUP). This field can be left null to identify that no exceptions are defined.
PZ.NATIONAL.COMP.AUTHORITY	Holds the list of valid National Competent Authority who can authorise or block a third-party provider (TPP).
PZ.OPEN.BANKING.DIR	Holds data for each TPP entity.

Illustrating Model Products

Payment Services Directive (PSD) is a set of laws and regulations for payment services in EU and EEA. Some of the PSD features available in the Model Bank are listed below:

Product Name	Features
PSD Regulation	Category Code between 1000 and 1009 are considered for PSD Availability of transparency check in Payment Order
Payment Initiation Service Provider (PISP)	A regulated PISP is a service provider who can initiate a payment transaction on behalf of a customer at the financial institution, if the customer had given consent The details of the PISP are recorded on a third-party directory held on Temenos Transact