What is PSD2 and how can it help me?
The PSD2 (Revised Payment Service Directive) makes the provision of payment initiation services and account information service regulated payment services.
The definition of “payment services” expands under PSD2. Two new types of payment service have been added:
Do I need to have a license to operate as payment institution?
Under PSD2 the providers of payment initiation services and account information services are regulated for the first time. The PSD2 sets out authorisation/registration requirements on providers of these services, but in some respects less burdensome compared to providers of other and more established types of payment services.
Providers of account information services only need to “register” with their national regulator rather than be authorised as a payment institution.
When was the regulation implemented?
The deadline for transposing the PSD2 to local legislation was set for 13 January 2018. The actual transposition time was different from country to country.
The final regulatory technical standards (RTS) on strong customer authentication (SCA) under PSD2 was published in the Official Journal of the EU. They applied from 14 September 2019.
However, the provisions which relate to the availability of documentation on the technical specifications of and testing facility for banks' dedicated interfaces were applied from 14 March 2019.
Between 2016 and 2022, the European Banking Authority (EBA) has released 6 technical standards, 8 sets of guidelines, 8 opinions and more than 200 Q&As.
Where to apply for authorisation?
You apply to the financial supervisory authority in your home member state, i.e. the country in which your registered office is situated.
What information is required in the application?*
Check with your local authority for details on the application process and the information to be provided.
What is coming next?
PSD3 and Open Finance regulation is expected to come during summer 2023. Please read our latest blogs about this topic:
Succeeding with PSD3 by learning from PSD2
Will PSD3 boost or hinder innovation?
Open Finance: the next step on the journey towards Open Economy