New Payments Service Directive (PSD3) and Regulation (PSR)

The payment services market has changed significantly in recent years. Electronic payments in the European Union (EU) have been constantly growing, and the COVID-19 pandemic has accelerated this trend. New providers, enabled by digital technologies, have entered the market, in particular those providing open banking services involving the safe sharing of financial data between banks and financial technology firms. More sophisticated types of fraud have also emerged, putting consumers at risk and affecting trust.

Executive summary

The European Commission (EC) has published a legislative package of two proposals: an update of the Payment Services Directive (PSD3) and, for the first time, a Payment Services Regulation (PSR). The package aims to ensure that consumers can continue to make payments and electronic transactions safely and securely in the EU, domestically or across borders, in euro and other currencies.

Main Content

This Technical Note summarises the set of measures regulated in both proposals with the following objectives:

• Strengthen consumer protection and confidence in payment services. To this end, new transparency requirements are introduced for transfers to third countries, as well as the obligation for payment service providers (PSPs) to implement measures to inform their users of the risks of fraud and to establish specific training on fraud for their own employees.
• Improve the competitiveness of Open Banking services, by removing barriers to the provision of open banking services and improving customers' control over their payment details.
• Improve implementation and enforcement in Member States. For this, Member States shall require undertakings intending to provide any of the payment services, or electronic money services, to obtain authorisation from the competent authorities of the home Member State for the provision of those services.
• Improve access to payment systems and bank accounts for non-bank PSPs. Central Banks may, at their discretion, provide account services to non-bank PSPs.

Download the technical note on New Payments Service Directive (PSD 3) and Regulation (PSR) (disponible en inglés).