Requesting Payment Initiation (PIS)

A Payment Initiation Service Provider (PISPClosedPayment Initiation Service Provider – a TPP that initiates a payment order at the request of the payment service user with respect to a payment account held at another payment service provider.) as defined under PSD2 is able to issue payment instruments and initiate online and mobile payments to beneficiaries (businesses or people) directly from the payer’s bank account. Before accessing an account, however, a PISP must receive formal approval and consent from the PSUClosedPayment Services User – an individual person or legal business entity making use of an Open Banking service as a payee, payer or both.. A connection to the payer’s bank system is then required to access and debit the payment account through a payment instruction given by the PISP.

In all cases, the PISP needs to know the account information of the beneficiaries to which it is sending the funds. Consequently, PISPs must build connections to and manage relationships with payment service users (PSUs), as well as with the respective Token-connected bank (ASPSPClosedAccount Servicing Payment Services Provider – any financial institution that offers a payment account with online access. This includes banks and building societies. PSD2 requires ASPSPs to provide access to trusted third parties for initiating payments and accessing account information.).