What is PSD2?
PSD2 is the new European Directive (2015/2366/EU) which incorporates, complements and substitutes the previous PSD (2007/64/CE), which provided the legal basis for the creation of an EU-wide single market for payment services.
What is the scope of the Directive?
The PSD2 applies to payment services in the European Union. It focuses mainly on electronic payments and does not include, among the others, paper based payment transactions like cash and cheques.
What is the aim of PSD2?
PSD2 aims to create a single and integrated payment services market, aligning standards for institutional banks and emerging Payment Service Providers (PSPs), and accelerating the digital transformation in payments.
Its main objectives are to:
- contribute to a more integrated and efficient European payments market
- open up payments market to new entrants increasing competition
- promote innovative and internet payment services
- introduce strict security rules for the initiation and processing of electronic payments and for the protection of consumers’ data