The arrival of Payment Services Directive 3 (PSD3) means significant changes for all financial organizations in the EU. In this blog, we briefly explain what PSD3 focuses on and what the implications are for payment service providers and consumers.
What is PSD3?
Looking back, the trend is clear and logical. PSD1 focused on creating one integrated European payments market and stronger consumer protection. PSD2 built on that by emphasizing security and innovation. PSD3 then looks more closely at developments in the payments sector and the challenges that come with digital innovation and new technologies.
Why is this needed?
Rules need to keep pace with developments in the world of payments to stay relevant and retain their value. PSD3 focuses on a number of core topics:
- Consumer protection: consumers need to be better protected against fraud and unauthorized payments, especially now that payments are mainly online and mobile
- Competition: market access for new players needs to improve, supporting more innovation and lower costs for consumers;
- Open Banking: banks share data with third parties, enabling new digital services;
- Security: there will be stricter requirements for security, risk management, and transparency to strengthen the resilience of the financial sector.
Preparation
Since we, as a payment service provider, are of course responsible for complying with laws and regulations ourselves, we believe it is important to keep our relationships informed about changes in the landscape, and to share that we are actively working on this.
Although PSD3 was proposed by the European Commission in mid-2023, the exact effective date has not yet been finalized. Based on the current timeline, PSD3 could likely enter into force around 2025 or 2026.
Contact
Want to learn more about PSD3 or our payment solutions? Feel free to get in touch. We would be happy to talk.
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