March 25 forms the official start for MyBank. The customers of 28 different financial institutions will be able to use MyBank as of today. Paul Alfing, chair of Ecommerce Europe’s working committee on e-payments: “It is a good thing that a European solution has been found for ‘payments via bank accounts’ as an alternative to ‘payments via a card’. Nevertheless, its broad – and particularly rapid – adoption by banks, and thereafter by webshops, is crucial for MyBank to be a real success”.
Administrator EBA Clearing, which is jointly owned by 64 large banks, had already announced at the end of last year that banks in Italy, France and Luxembourg would be the first participants in MyBank. Ten of the banks affiliated with EBA Clearing represent the total of 28 institutions that have participated from the very start. There are also various integrators who support the payment service providers and merchants with ready-made solutions.
First credit, then debit
Following a successful pilot with MyBank, as of today it will be possible to process the first credit transactions via browser applications. This will be followed later this year by mobile payment applications and – probably as of October – support for e-mandates and SEPA direct debits. Alfing: “The possibility of issuing electronic collection authorisations via MyBank (e-mandates) is a valuable addition that fulfils an important request of web-retailers”. Only then will the potential become evident of this pan-European payment initiative which enables banks to offer an alternative to cross-border payment methods such as credit cards and PayPal.
Personal bank environment
MyBank is based on internet banking. It allows webshop customers to pay within the environment of their own bank. Authentication of MyBank-payments takes place with a TAN-code or a random-reader. EBA Clearing offers banks an opportunity to commence participation during four sequential time frames. Nevertheless, they are under no obligation. The second joining window starts on 15 April 2013.
EBA Clearing developed MyBank within the spirit of SEPA (Single Europe Payments Area). Brussels is hoping to remove barriers in order to realise a single European payments market – even when online. Last week the European Central Bank announced that many organisations were running risks by being late in starting with Sepa-migration. Webshops too will have to carry out all sorts of technical and administrative adjustments. Alfing:”Being late in starting migration to SEPA could mean that no further payments can be made nor sums received after 1 February 2014. It is essential to draw up an inventory of necessary actions and a plan of action in good time”.
Relevant information about MyBank, e.g., about costs and plans for supporting mobile payments, has been bundled in a recently published brochure. You can download it here (pdf). » MyBank – brochure