What is PSD2 and how can it help me?

The PSD2 (Revised Payment Service Directive) will make the provision of payment initiation services and account information service regulated payment services.

The definition of “payment services” will expand under PSD2. Two new types of payment service have been added:

Do I need to have a license to operate as payment institution?

Once PSD2 is implemented, the providers of payment initiation services and account information services will be 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 will only need to “register” with their national regulator rather than be authorised as a payment institution.

When will the regulation be implemented?

The deadline for transposing the PSD2 to local legislation was set for 13.1.2018. 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 will apply 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 will apply from 14 March 2019.

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.