Payment initiation services in the new Portuguese payment services act

Patrícia Alexandra Paiva Duarte

Keywords

Payment initiation services; third party providers; open banking; data protection; consent; unauthorized payment transactions; strong authentication.

Abstract

Traditional payment services have been replaced by the use of mobile devices and by new solutions developed by FinTechs that spread the idea of safer and faster payments among consumers. Along with these innovations, the new Portuguese payment services act has extended its scope to include new activities regarding payment services, namely payment initiation services, on which we will focus our attention. Thus, we propose to inquire about user protection, regarding the provision of those services by third parties, in two essential dimensions of his protection, the safeguarding of his personal data and the protection against fraud on electronic payments. In light of this, it is important to envision the relationship established between this new initiation services providers, not only with the user, but also with the provider, who provides and maintains the account, to which the law doesn't always appear enlightening, namely in terms of authentication and objective sharing of the risks of unauthorized payment transactions.