EU Reaches Compromise On PSD3 And PSR: Tighter Harmonisation, Crypto Rules And Stronger Consumer Transparency.

The package centres on the proposed PSD3, which is intended to repeal and replace the current Payment Services Directive (PSD2), together with linked adjustments to PSR provisions. It moves many conduct-of-business rules into a directly applicable Regulation, aligns electronic‑money and payment conduct rules, narrows scope exclusions, and introduces new measures on cash access, currency-conversion disclosure, strong customer authentication, fraud liability, and crypto-related payment activities.

What changes and why it matters

The compromise seeks to address long-standing fragmentation in EU payments law that arose under PSD2, where varying national transpositions of Directive-level rules undermined the single market’s consistency. PSD3 is designed to repeal PSD2 in its entirety rather than merely amend it, reflecting the legislature’s view that incremental reform is insufficient. By migrating many conduct rules into the directly applicable PSR, the Council aims to eliminate