Payment Services Directive 2

The objective of the initial PSD, adopted in 2007, was to create a single market for payments within the European Union. 

The PSD I legislation:

  • Created the rules and guidelines for modern payment services in the European Union
  • Simplifies payments and payment processing across the European Union
  • Aims to promote competition by opening payments up to new entrants
  • Advocates payment efficiency, innovation and reduced costs
  • Provided the legal platform for the Single Euro Payments Area – SEP

The revised Payment Services Directive (PSD2) was proposed by the European Commission in 2013, and the objective was to create a level playing field by:

  • Standardising, integrating and improving payment efficiency in the European Union
  • Offering better consumer protection
  • Promoting innovation in the payments space and reducing costs
  • Incorporating and providing clarity on the use of emerging payment methods such as mobile payments and online payments
  • Create a equal playing field for payment service providers  - enabling new companies to get into the payments space
  • Harmonise pricing and improve security of payment processing across the European Union
  • Incorporate new and emerging payment services into the regulation

Document Details

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2015
Date of Document: 
Thursday, December 10, 2015

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