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The EU’s third Payments Services Directive (PSD3) is set to revolutionise how banks and non-bank payment service providers (PSPs) in Europe operate, with new requirements in key areas such as safeguarding of client funds, Strong Customer Authentication (SCA), and rights and obligations.
Among the goals of the updated legislation are increased consumer protection, the enablement of open banking and a more forward-looking approach to the payments sector.
PSD3 will work in tandem with the first Payment Services Regulation (PSR), and both represent an evolution of the second Payments Services Directive (PSD2).
Together the rules will aim to offer increased harmonisation and a more level playing field for banks and non-bank PSPs.
This piece identifies the main points of difference between PSD2 and PSD3/PSR, suggests what the updates could mean for affected organisations, and provides suggestions of potential next steps.
The full version of the comparison can be found here.
