European Commission Issues Proposals Modernising Payment Services And Opening Financial Services Data

On 28 June 2023, the European Commission (the "Commission") put forward two legislative proposals aimed with the objective of modernising the payments industry and broader financial sector, ensuring greater levels of consumer protection and fostering competition in electronic payments.

The payment services market has evolved greatly in recent years, with the value of electronic payments reaching €240 trillion in 2021. This growth was accelerated by the COVID-19 pandemic which saw new providers enter the market, particularly those providing 'open banking' services. However, this expansion also gave rise to more sophisticated fraudulent activities, posing risks to consumers and eroding trust in the financial sector. In light of these developments, the European Commission's new legislative package aims to ensure that the EU's financial industry can effectively embrace the ongoing digital transformation, while also identifying potential risks and opportunities for