PSD3

European Union - Payment Services Directive.

An updated version of the Payment Services Directive, to replace PSD2.

Open Banking strengthened

"Further afield, the European Commission’s next Payment Services Directive (PSD3), a new and updated iteration of the EU’s landmark payments legislation, is expected to be finalised and available by the end of 2024, with an 18-month transition period for EU Member States.

Among other factors, the legislation is expected to introduce more robust security measures to the payments space, while strengthening the concept of Open Banking.

Although PSD3 will only directly affect Member States, there will certainly be ramifications for the financial services sector in the UK as firms aim to match the pace of change in Europe.

New legislation is likely to create opportunities for industry stakeholders to collaborate and embrace new technologies – the impact of which is likely to shape the future of frictionless payments."

What will the next payments revolution look like – and how will Open Banking play a role? - Sarah Saigol, managing director, cash management & payment solutions, Lloyds Bank Corporate & Institutional - The Treasurer - Issue 2, 2024, p34.

See also

• EC Directive 2007/64/EC
• European Union (EU)
• Frictionless payments
• Legislation
• Member state
• One-leg-out payment
• Open Banking
• Payment Services Directive
• Payments and payment systems
• PSD2
• Regulatory Technical Standard (RTS)
• SCA
• Security
• Single Euro Payments Area
• Stakeholder
• Third party provider (TPP)