Requesting Payment Initiation (PIS)
A Payment Initiation Service Provider (PISPPayment 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 PSUPayment 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.
Note: In the context of payment initiation, the PISP and TPPThird-Party Provider – an authorised online service provider introduced as part of Open Banking. TPPs exist outside of the account holder’s relationship with their bank but may be involved in transactions carried out by the user. discussed here are one and the same.
For each TPP member, Airwallex imposes a maximum API request limit of 1,000 requests per minute.
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 bank (ASPSPAccount 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.).
Next, we'll discuss the supported payment flows for obtaining user consent and then dive into implementing payment initiation requests.