资源描述
Journal of Economic Behavior and Organization 178 (2020) 385401 Contents lists available at ScienceDirect Journal of Economic Behavior and Organization journal homepage: The impact of Payment Services Directive 2 on the PayTech sector development in Europe Micha Polasik a , Agnieszka Huterska a , , Rehan Iftikhar b , t epn Mikula c a Nicolaus Copernicus University in Torun, J. Gagarina 13A, 87-100 Torun, Poland b Maynooth University, Maynooth, Co Kildare, Ireland c Masaryk University, A: Lipov 41a, 60200 Brno, Czechia a r t i c l e i n f o Article history: Received 15 September 2019 Revised 4 July 2020 Accepted 11 July 2020 Available online 14 August 2020 Classification codes: G23 O38 O33 E42 G11 G28 Keywords: PSD2 Financial regulation Payment innovation Payment services FinTech PayTech a b s t r a c t The implementation of Payment Services Directive 2 (PSD2) has radically changed the reg- ulatory environment for providing payment services in the European Economic Area. The main objective of the study is to determine the impact of PSD2 on the number of newly established PayTech companies. The second objective is to explain the factors driving the distribution of PSD2-licensed entities across the European Union countries. The difference- in-difference method and the Poisson regression model served our empirical analysis. The results show that the adoption of PSD2 in November 2015 caused a rapid but temporary surge in PayTech start-ups in Europe. After national transpositions of the directive, the number of new entrants fell in 2018; however, it remained at a higher level than before the adoption of PSD2, which indicates its positive impact. The analysis has proved that market potential, the characteristics of payment systems, including the popularity of pay- ment cards, and the public environment for FinTech start-ups provided by the authorities significantly affected the number of PSD2 licences issued. The introduction of the PSD2 has made the size of the domestic market play a smaller role, as PayTechs can operate on a pan-European level also while based in a smaller country. The importance of an open business environment has increased and offering regulatory sandboxes has proven to ef- fectively support the development of the PayTech sector. 2020 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license. ( creativecommons/licenses/by-nc-nd/4.0/ ) 1. Introduction The establishment and development of PayTech companies, which is a payment services-oriented part of the FinTech sector, results from the dynamic progress in digital technologies since the beginning of the 21st century in virtually every branch of the economy ( Gomber et al., 2018 ). However, the payments sector in the European Union (EU) is special in that, in addition to technological progress, it is greatly influenced by legal regulations that have dramatically altered the relations between payment services providers and the conditions under which those services are provided ( Jagtiani and John, 2018 ). Corresponding author. E-mail addresses: Michal.Polasikumk.pl (M. Polasik), Agnieszka.Huterskaumk.pl (A. Huterska), Rehan.Iftikharmu.ie (R. Iftikhar), stepan.mikulaecon.muni.cz (. Mikula). doi/10.1016/j.jebo.2020.07.010 0167-2681/ 2020 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license. ( creativecommons/licenses/by-nc-nd/4.0/ ) 386 M. Polasik, A. Huterska and R. Iftikhar et al. / Journal of Economic Behavior and Organization 178 (2020) 385401 The Single Euro Payments Area (SEPA) programme and the first Payment Services Directive (PSD) initiated these changes. However, the real change in the rules of the game in the European retail payments market arises from the concept of open banking ( Zachariadis and Ozcan, 2016 ) and the second Payment Services Directive (PSD2), 1 and particularly of its novel ac- cess allowance to bank accounts for a new category of entities providing payment services Third Party Providers (TPP), including non-bank entities ( Drasch et al., 2018 ). Additional regulations accompanying PSD2 ( Wolters and Jacobs, 2019 ) en- compass Regulatory Technical Standards (RTS), 2 including Strong Customer Authentication (SCA). Clearly, there is a massive new playing field following these major regulatory changes under which the payment services market functions in the EU ( Donnelly, 2016 ). The development of open banking and the dynamic growth in the sector of non-bank PayTech entities requires systematic research. The first studies on open banking and the API economy ( Philippon, 2017 ; Zachariadis and Ozcan, 2016 ), the legal ( Steennot, 2018 ) and technical aspects ( Mansfield-Devine, 2016 ; Wolters and Jacobs, 2019 ) have been already published ( Gomber et al., 2017 ; Nicoletti, 2017 ). However, research on PayTech entities under PSD2 regulations has not been explored so far, mainly because of its recent occurrence. Moreover, no comprehensive studies regarding the factors determining the potential for the development of non-bank PayTech entities in different countries within the European Economic Area (EEA) have been conducted yet. 1. The main objective of the study is to determine the impact of Payment Services Directive 2 on the number of newly established PayTech companies. 2. The second objective is to explain the factors driving the distribution of PSD2-licensed entities across the European Union countries. To the best of the authors knowledge, this is the first academic paper that: (a) applies the new and complex Payment Institutions Register started by EBA to obtain scientific evidence; (b) quantitatively evaluates the impact of PSD2 on the dy- namics of incorporations of PayTech start-ups in the EU; (c) jointly examines the market potential of the country and public environment provided for FinTech start-ups by authorities, and (d) assesses the impact of payment system characteristics on incorporations of PayTech start-ups. The results are important for entrepreneurs preparing to enter the PayTech market in Europe, as well as for the EU lawmakers and the financial authorities of particular EU countries, who are considering the proper approach to licensing and supporting FinTech sector development. This study is structured as follows: Section 2 contains a literature review and a description of the PSD2 regulations context, as well as the proposed research model of PayTech development. The data collection process and the growth of the PayTech market in the EU are presented in Section 3 based on descriptive statistics. The results from the difference-in- difference method and the Poisson regression model are presented and discussed in Section 4 . The paper is concluded by providing a summary and establishing the scope for further studies. 2. Literature review 2.1. Fintech and PayTech research The development of digital technologies and the automation of financial services have led to a revolution in the banking and payment sector ( Bansal et al., 2015 ). It came with the emergence of companies known as FinTechs ( Milian et al., 2019 ) and a change of business models from business- and banking-oriented to customer-oriented ( Alt et al., 2018 ; Navaretti et al., 2017 ; Vives, 2019 ). The term FinTech is such a new concept that a common definition has not yet been agreed upon. Two main approaches competing in defining FinTech have been indicated in the literature ( Harasim and Mitr ega-Niestrj, 2018 ). In the first ap- proach defining by subject the emphasis is put on digital technologies, that are implemented by financial entities banks or non-banks ( Gomber et al., 2018 ; Ilys and Varga, 2018 ; Navaretti et al., 2017 ; Vives, 2019 ). The other approach defining by object indicates the separate sector of non-bank financial entities whose business model is based on new technologies ( Alt et al., 2018 ; Mico and Micu, 2016 ; Milian et al., 2019 ; Shim and Shin, 2016 ). However, some also propose definitions that combine elements from both approaches ( Buchak et al., 2018 ; Kim et al., 2016 ). Between these two approaches, the defini- tion of FinTech by object provides a practical opportunity to identify and separate entities that can be empirically analysed. This definition is also more in line with the approach taken under PSD2, where specific licences are intended for non-bank entities (see 2.2). Therefore, in this work, we have opted for defining FinTech and PayTech by object . In this context, FinTech entities operating in the payment sector are referred to as PayTechs. FinTech has already been the subject of studies addressing many aspects of this phenomenon. An important direction of research was explaining the factors of FinTech development, i.e. regulatory support ( Gomber et al., 2018 ; Jagtiani and 1 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 20 02/65/EC, 20 09/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (Text with EEA relevance), OJ L 337, 23.12.2015, p. 35127, data.europa.eu/eli/dir/2015/2366/oj 2 Commission Delegated Regulation (EU) 2018/389 of 27 November 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication (Text with EEA relevance.) C/2017/7782, OJ L 69, 13.3.2018, p. 2343, data.europa.eu/eli/reg _ del/2018/389/oj M. Polasik, A. Huterska and R. Iftikhar et al. / Journal of Economic Behavior and Organization 178 (2020) 385401 387 John, 2018 ; Kalmykova and Ryabova, 2016 ; Lee and Shin, 2018 ; Leong et al., 2017 ; Musa et al., 2017 ; Vives, 2019 ) or cross-organisational cooperation ( Drasch et al., 2018 ; Polasik and Piotrowski, 2016 ; Szpringer, 2019 ). Competition between banks and FinTech companies ( Buchak et al., 2018 ; Caporale and Caporale, 2008 ; Jagtiani and John, 2018 ; Li et al., 2017 ; Saksonova and Kuzmina-Merlino, 2017 ; Vives, 2019 ) and its impact on the stability of the banking sector ( Kavuri and Milne, 2019 ; Vives, 2019 ) is also considered within this topic. Du et al. (2019) , Gomber et al. (2018) , Jnger and Miet- zner (2019) examined usage the blockchain technology to financial market applications. However, the field of payments and development of PayTech entities were studied so far mainly as an addition to other aspects of FinTech ( Gomber et al., 2017 ; Hill, 2018 ). A notable exception is mobile payments that were already extensively studied in many dimensions ( Dahlberg et al., 2015 ; de Luna et al., 2018 ; Karsen et al., 2019 ; Libana-Cabanillas and Lara-Rubio, 2017 ). This was due to the growth in of mobile payment solutions, as a precursor to PayTech ( Iman, 2018 ), both in highly developed and developing countries ( Van Hove and Dubus, 2019 ) where they additionally play an important role in financial inclusion ( Frost, 2020 ). The strictest legal framework regulating the PayTech sector exists in the EU, culminating in Payment Services Directive 2. 2.2. Payment Services Directive 2 Until the start of the 21st Century, payment services were not the subject to significant EU regulations ( Brener, 2019 ). This changed with the announcement of the Lisbon Strategy in 20 0 0 and the launch of the SEPA (Single Euro Payment Area) project. The main aim of this programme was to harmonise and integrate electronic retail payments in Europe and whose implementation over the past 20 years has brought many changes to payment landscape in Europe ( Bolt and Schmiedel, 2009 ; European Central Bank, 2019 ; Martikainen et al., 2015 ; Silva et al., 2016 ). The regulation of the payment area began with the publication of the Electronic Money Directive (superseded by the Electronic Money Directive II in 20 09). In 20 07 the Payment Services Directive (PSD) was adopted a much more extensive act created in order to restructure and further harmonise entire payments market within the EU. Both regulations created new entities: electronic money institutions (EMI) and payment institutions (PI), which, after obtaining appropriate licences from supervisory authorities, have the right to provide payment services alongside traditionally functioning credit institu- tions (i.e. banks). On October 8, 2015, the European Parliament adopted a new directive that would replace the PSD from January 13, 2018, not fully coming into force until September 14, 2019. The revised Payment Services Directive (PSD2) provides the legal framework for retail payments innovation by setting rules for third-party payment service providers. PSD2 enhances consumer protection and increases security for payment services . ( Mersch, 2019 ). In PSD2, to the previously binding list of services that can be provided by both credit institutions and payment institutions, were added: (1) payment initiation services (PIS) and (2) account information services (AIS). In PSD2, the AIS service is defined (in Article 4 (16) as an online service consisting in providing consolidated information on at least one payment account held by a given payment service user with another payment service provider or with more than one service provider payment. The essence of the PIS service (in the context of Article 4 (15) of the PSD2 Directive) is the ability to initiate a payment transaction by a third party at the request of the payer from an account maintained by the payment service provider ( Widawski et al., 2016 ). There is also a new licence (besides the ones concerning PI and EMI) for the Account Information Service Provider (AISP) issued to the entities providing the AIS service. The PSD2 regulation was then transposed into the national law of individual EEA countries. The deadline for this im- plementation was set to January 13, 2018, but individual countries complied on different dates and usually by changing or adopting more than one national legal act ( EUR-Lex, 2019 ). These services pose a challenge to the traditional model of banks operation because they allow external entities, called Third Party Providers, to obtain information, and initiate payments from consumer payment accounts operated by these banks. Therefore, the PSD2 Directive means the regulatory constitution of a new business model, which is called open banking. It was supposed to constitute an incentive to accelerate innovation in the payment services market and create new opportunities for FinTech start-ups ( Lautenschlger, 2019 ). Verifying if this incentive affects European start-ups is one of the aims of this work. 2.3. PayTech development factors In accordance with the objectives of the work, two measures of the PayTech development were adopted: (1) the number of non-bank PayTech start-ups established, and (2) the number and types
展开阅读全文