PSD2, or EU Directive 2015/2366, is a significant step towards a better-integrated payments market in the EU.

At Space Invoices, we are always excited about innovations that transform the financial landscape. One such game-changer is the European Union’s Payment Services Directive 2 (PSD2), which has revolutionized the way fintech start-ups like N26 operate, enabling seamless financial management, bank account connectivity, and fluid money transfers.

 

PSD2, or EU Directive 2015/2366, is a significant step towards a better-integrated payments market in the EU. It aims to open up the market to new services and providers, setting rules for secure financial data sharing while ensuring transparency. In essence, traditional banking institutions no longer monopolize your data, paving the way for start-ups and innovative businesses to create new financial management solutions without the need for extensive infrastructure.

 

So, what does PSD2 mean for you? As a citizen of an EU member state, you now have a wider choice of financial mobile apps to manage your finances. The directive's liberal approach to financial data transmission, coupled with stringent security measures, has fostered increased competition in the fintech industry, benefiting functional areas like invoicing and stock keeping, crucial to businesses of all sizes.

 

Moreover, PSD2 has reduced the liability of unauthorized payments from 150 euros to just 50 euros, eliminated surcharges for consumer credit or debit card usage, and added an unconditional right of refund for direct debits in euro. This has led to a surge in innovative fintech apps on the Google Play Store and Apple App Store.

 

So, how does this impact Space Invoices API users?

Just as PSD2 democratizes data, it also opens up new possibilities for securely and efficiently connecting various technologies in the era of digital governance.

 

At Space Invoices, we're excited about the potential that PSD2 brings! Here are a few new function sets we envision:

Automated Invoice Payment Status: Automatically mark invoices as "paid" when payment is received from a specified IBAN number, by amount received, or in combination with dates, memo line description, and account owner name.

Automatic Stock Management: Automatically add or subtract items from stock when invoices are sent or received, ensuring accurate stock counts for VAT liability reasons.

Comprehensive Financial Overview: Compare your income and revenue with your invoices and available stock. With a connected bank account, you can immediately assess your cash flow health and compare it with other available metrics.

Simplified Payment Process: Banks can make it easier for clients to pay off invoices promptly, benefiting everyone involved.

Invoice Financing: Enable your clients to pay your invoice in multiple installments, with Space Invoices crediting your business account with the authorized amount.

 

While these are potential features under PSD2, we are actively exploring the best-case implementations to develop useful features for our users. If you have an idea for an additional module or feature that could streamline your business invoicing, we'd love to hear from you! Reach out to us at [email protected].

Additional reading:

• 3 Best White-Label Invoicing APIs for B2B SaaS, Fintech, and Neobank Platforms
• Ask Your Developer: Key Insights for the Build vs Buy Debate in Invoicing API
• Bosnia and Herzegovina Implements VAT on Non-Resident Digital Service Providers