The European Union (EU) is updating its regulatory framework
governing payment services by introducing the "Payments
Services Package". In June 2023, the European Commission
published a set of legislative proposals designed to modernise and
enhance the digital financial landscape within the EU.
The Payments Services Package consists of Payment Services
Directive III (PSD3), to be adopted alongside the Payment Services
Regulation (PSR) and the Regulation on a Framework for Financial
Data Access (FIDAR).
PSD3 is an update to the existing Payment Services Directive
(PSD2), aimed at further refining and expanding the regulatory
framework for payment services. It will also repeal and replace the
Electronic Money Directive (EMD2), establishing a single regulatory
framework governing both payment services and e-money services.
There would be a single set of requirements for licensing, conduct
of business and prudential supervision, as e-money institutions
will be
