From PSD2 to PSD3
PSD2, in force since 2018, revolutionized European payments with open banking and SCA. However, seven years of practice revealed gaps — fragmented implementation, inconsistent APIs, and emerging fraud patterns. The Commission proposed PSD3 (Directive) and PSR (Regulation). PSR will apply uniformly across all Member States.
Key PSR Changes
- Enhanced open banking — APIs must match bank's own interface performance
- IBAN/name verification — mandatory before transfers
- Expanded fraud liability — full APP fraud reimbursement within 10 business days
- Updated SCA — simplified with delegated authentication
What Will PSD3 Change?
- PI/EMI license merger — single unified payment institution license
- Higher capital requirements — estimated increase of 20–40% depending on service category (exact amount depends on final PSD3 text)
- Right to bank accounts — addressing persistent de-risking
- Cash-in-shop — cash withdrawal at retail stores
Timeline
Expected adoption in 2027, full application in 2028–2029. Payment institutions should conduct an impact analysis now.
Need regulatory guidance? Contact us.