Payment Services Directive 2 (PSD2), applicable from 13th January 2018, introduces changes and additions to the initial Directive, which laid the legal foundations for a single, EU-wide payments market. This paper is intended to be a comprehensive guide to how PSD2 will affect your operations – from the processing of transactions (due to PSD2’s scope extension), to customer authentication requirements, to changes stemming from licensing third party providers to offer payments services.
PSD2 contains a number of key alterations to the preceding Directive, including extending its application both geographically – to payments where only one payment service provider is located in the EU/EEA – and beyond euro payments to all currencies. It introduces strict security requirements for the initiation and processing of electronic payments, mandating 2-factor authentication. And finally, it licenses third party providers to offer specific, payment-related services, and obliges financial institutions to give them access to customer account information via a virtual interface.
Each of these changes has implications for both financial institutions and corporates accessing payment services. In this paper, we offer an overview of the Directive and a summary of its most important provisions, highlighting how each of them will directly impact your organisation.
Tell us about your interests and we’ll email you relevant news, insights and information as soon as they’re published