With PSD2 and various instant payments systems emerging around Europe, many believe it’s only a matter of time before cards are seriously challenged as a payment method, particularly for e-commerce transactions. Consumers can pay for goods by authorizing newly regulated Payment Initiation Service Providers (PISPs) to trigger the payment directly from their bank account bypassing the card schemes.

Last week Deutsche Bank and International Air Transport Association (IATA) announced a pilot “to test a disruptive new payment model”, to “collect customer payments directly from consumer accounts”. According to the announcement, “the new payments scheme will offer improved speed, security, and transparency”, and claims to “reduce the estimated USD 8 billion that IATA members currently incur from payment processing costs and fraudulent activity.”