PSD2 has been on “everyone’s” tongue in the banking industry the last year or two. A follow-up from the first Payment Services Directive, it aims to change the way retail banking is performed in the EEA.
The Payment Services Directive (PSD) is an EU Directive that was put into force late December 2007, regulating payment services and payment service providers in (European Union) EU and European Economic Area (EEA). The Single Euro Payment Area (SEPA) defines the interoperability of payment products, infrastructure and technical standards, such as ISO 20022, IBAN, BIC, rule books for credit/debit transfers and more.
The PSD provides the legal framework within which all Payment Service Providers (PSPs) must operate. The Directive’s purpose is to increase Pan-European competition and participation in the payments industry. Also from nonbanks, and to provide for a level playing field by harmonizing consumer protection and the rights and obligations for PSPs.