My Department has taken several actions to ensure that banks and financial institutions provide banking and payment services to older people, including those who live rurally. These actions include measures which require banks and payment institutions to offer alternative methods of payment authorisation, for those users who prefer not to use smartphones and online banking.
The Payments Accounts Directive (PAD) was transposed in Ireland as the European Union (Payment Accounts) Regulations 2016. Under PAD, any consumer who is legally resident in the EU and who does not already have a current account with a credit institution in the State has the right to open and use a current account with basic features. This measure ensures all EU consumers including older people have access to a basic payment account.
Additionally, the PAD creates the concept of a basic bank account. A basic bank account is a current account that is free of charge for everyday banking. Customers who qualify for a basic bank account do not pay everyday banking or maintenance fees for everyday banking, for the first year at least. Banks and payment firms must ensure that their basic bank accounts include core services including ATM withdrawals, cashback, bank transfer, lodgements, statements and debit card payments free of charge.
One key measure in the European Union (Payment Accounts) Regulations 2016 is the requirement for banks to allow consumers to manage and initiate payment transactions from his or her payment account with basic features; from publicly accessible physical premises or using online facilities. This means that banks are obligated to have in place payment authorisation options which utilise in branch authorisation as opposed to online authorisation via smartphone.
Once finalised, the proposed EU Payment Services Regulation (PSR) will require banks and payment institutions to ensure that all customers, including older persons, have access to a non-digital method for performing strong customer authentication (SCA) when required. Banks and payment institutions will be prohibited from making SCA contingent upon owning a smartphone. This ensures inclusivity and accessibility in payments services.
