The new Proposed Services Directive (PSD3) is a set of rules that will regulate electronic payments and the banking system in Europe, including non-bank payment service providers. It is an update to the existing PSD2 framework and aims to address new challenges and opportunities in the digital payments landscape.
PSD3 will have a significant impact on the banking and finance industry. It aims to promote fair competition by creating a level playing field between banks and non-bank payment service providers. It also focuses on advancing open banking and improving the functionality of open banking services. PSD3 also addresses the availability of cash in shops and ATMs and seeks to improve consumer rights and streamline regulation and enforcement.
The exact timeline for implementing PSD3 is not yet known, but finalized versions may be available by late 2024. Member states will have two years to incorporate the new standard into national legislation, and companies will have an additional two years to comply with the regulations. This allows businesses within the European Economic Area (EEA) enough time to adapt their systems and operations.
PSD3 represents the evolution of payment services in Europe and aims to tackle emerging challenges and leverage opportunities in the digital payments landscape. The finance industry will need to adapt to these regulatory changes to remain competitive and compliant in the evolving payments ecosystem.
Key points:
– PSD3 is a proposed set of rules that will regulate electronic payments and the banking system in Europe.
– It aims to promote fair competition, advance open banking, enhance cash availability, improve consumer rights, and streamline regulation and enforcement.
– The timeline for implementing PSD3 is not yet known, but finalized versions may be available by late 2024.
– Member states will have two years to incorporate the new standard into national legislation, and companies will have an additional two years to comply with the regulations.
– PSD3 represents the evolution of payment services in Europe and aims to tackle emerging challenges and leverage opportunities in the digital payments landscape.