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PSD3: Revolutionizing EU Payments

The European Commission's proposal for PSD3 (Payment Services Directive 3) aims to enhance EU payments by modernizing the current PSD2 directive. These improvements will revolutionize the payment space for consumers and businesses, addressing key areas of concern.

PSD3: Revolutionizing EU Payments

Let's explore the main proposals put forward by the European Commission and their potential impact.

Key Proposals:

1. Open Banking Enhancements:

  • New requirements for data access interfaces

  • Consolidated interfaces for banks

  • Contingency data access for open banking providers

  • Consumer "dashboard" for data access control

  • Expanded access to financial data

2. Fraud Mitigation:

  • Extended refund rights for fraud victims

  • Mandatory matching of IBAN numbers with account names

  • Stronger customer authentication rules

  • Facilitating fraud-related information sharing among PSPs

3. Fairer Competition and Lower Prices:

  • Access to EU payment systems for non-bank PSPs

  • Ensuring payment and e-money institutions' access to bank accounts

4. Simplification:

  • Merger of e-money institutions with payment institutions

  • Consolidation of payment rules into a directly applicable regulation

5. Improved Cash Availability:

  • Retailers providing cash services without requiring a purchase

  • Clarification of rules for independent ATM operators

6. Enhanced Consumer Rights:

  • Addressing fund blocking issues

  • Improved transparency on account statements and ATM charges

PSD3's proposals hold immense potential for transforming the EU payment landscape. By enhancing open banking practices, mitigating fraud, fostering fair competition, simplifying regulations, ensuring cash availability, and strengthening consumer rights, PSD3 aims to create a secure, efficient, and consumer-centric payment ecosystem. As these proposals progress, it is crucial for stakeholders to actively participate and contribute to shaping the future of EU payments. With PSD3, the European Commission takes a significant step toward realizing a seamless and inclusive payment environment for all.

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