Introducing PSD3 And PSR: What Is It About?

On 28 June 2023, the European Commission unveiled a series of proposals, including proposals for the Payment Services Directive 3 ('PSD3') and the Payment Services Regulation ('PSR'). These amendments follow the Payment Services Directive 2 (PSD2), which aimed to transform the European Union's payment landscape by enhancing user safeguards, fostering innovation, and establishing a level playing field for payment service providers (PSPs). Nonetheless, shortcomings within PSD2 necessitated new regulations to keep pace with the rapidly evolving payments landscape.

From PSD2 to PSD3

The European Commission acknowledges the achievements of PSD2 in certain areas. Notably, the implementation of Strong Customer Authentication (SCA) played a pivotal role in reducing fraud. Furthermore, PSD2 successfully improved the efficiency, transparency, and options available to users in terms of payment instruments, granting them greater control over their payments.