The Second Payment Services Directive (PSD2) takes effect in Gibraltar

On the 13th January 2018, the Second Payment Services Directive ("PSD2") came into effect across the European Union. Furthermore, and in line with its existing obligation to transpose applicable EU Directives, Gibraltar has implemented PSD2 by enacting the Financial Services (Payment Services) Regulations 2018 (the "Payment Services Regulations") into force.

PSD2 replaces the original 2007 Payment Services Directive which, given the pace of technological advances in recent times, had become significantly outdated. The rapid emergence of mobile and online payments, as well as developments within emerging industries (such as the FinTech sector), have required an updated framework to be put in place. Indeed, various types of mainstream payment products and services did not fall under the framework of the old PSD regime.