PSD2 Payment Services Directive

European Union

2015

Payments

Overview

The Revised Payment Services Directive (PSD2), enacted in 2015, is a key piece of EU legislation regulating electronic payment services and enhancing consumer protection. It promotes innovation, competition, and security in the banking, fintech, e-commerce, and payments sectors.

PSD2 mandates banks to open customer payment account data to licensed third-party providers (TPPs) through APIs, enabling services like account aggregation and payment initiation. It also introduces Strong Customer Authentication (SCA) and fraud prevention measures to protect digital payments across the European Economic Area (EEA).

Key Obligations

Banks must provide regulated third parties access to customer payment accounts via APIs
TPPs must be licensed and authorized under national competent authorities
Strong Customer Authentication (SCA) is mandatory for most electronic transactions

Consumers must be protected against unauthorized transactions with clear liability rules
All payment service providers must report major security incidents and fraud metrics

FAQ

Related Regulations

Instant Payments Regulation EU

FCA Consumer Duty Regulation

EU AML Regulation AMLR

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