PSD2 was transformative for FinTech
IN BRIEF:
The revised Payment Services Directive proposal (which will replace PSD2 with PSD3) comes alongside the new Financial Data Access (FIDA) proposed rules as well as separate Payment Services Regulation (PSR)
It includes measures aimed at increasing the baseline adoption, functionality and performance of open banking Application Programming Interfaces
The major goals are combating and mitigating payment fraud, improving consumer rights, further levelling the playing field between banks and non-banks in terms of access to payment systems, boosting open banking, improving the availability of cash in shops and via ATMs and making enforcement of the rules more robust
What does this mean?
“Today we are taking concrete steps to modernise not only the EU’s retail payments industry but the financial service sector as a whole. In doing so, we are putting the best interests of citizens and consumers at the heart of financial services. In the EU’s growing data economy, every interaction in finance creates new data,” said Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union. “Today we are proposing a set of measures including enhanced protection for consumers making electronic payments in the EU and improved criteria to prevent and remedy payment fraud. This proposal will ensure customers and businesses benefit from more innovative payment and financial service options, whilst being confident that these are offered in a safe, transparent and secure way.”
