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Payment Services Directive 2

The Second Payment Services Directive (PSD2) is a key piece of payments related legislation in Europe that builds on the foundations of, and will supersede the original Payment Services Directive (PSD) that came into effect in 2009. Each European Economic Area (EEA) state is required to implement the PSD2 into their respective national laws by January 13, 2018.

What You Should Know About PSD and PSD2

  • The scope of the original PSD was limited to payments in EEA currencies between Payers and Payees who held their account with Payments Service Providers (PSP) located within the EEA.
  • The payments that PSD2 rules will apply to (vs. the original PSD) will increase to include:

    • Intra-EEA Payments (payments made between PSPs located in the EEA) in any currency, not just EEA currencies
    • One leg out (OLO) transactions in any currency (where one of the PSPs is located inside the EEA and the other PSP is located outside the EEA)
  • PSD2 increases competition by providing a framework for new financial service providers (third party providers (TPPs)) and new payment services (payment initiation and account information).
  • PSD2 requires PSPs to use Strong Customer Authentication (SCA) when a Payment Service User accesses its payment account online or initiates a payment transaction.

Please Payment Services Directive 2 - What You Should Know for more detailed information on PSD2.

In addition, this Web site will continue to be updated with useful information and particularly links to the relevant national legislation and other relevant official Web sites. Please bookmark this Web site and visit it frequently. It will be updated as additional information becomes available, including links to relevant national legislation.

  • The Payment Services Directive 2 and certain additional information is available on the European Commission website.
  • United Kingdom: The Payment Services Regulation 2017 (source of UK legislation ), comes into force on January 13, 2018. More general information about the PSD2 can be found on the UK Financial Conduct Authority website.
  • Germany: The Act transposing PSD2 ("Gesetz zur Umsetzung der Zweiten Zahlungsdiensterichtlinie") of July 17, 2017 is published in the Federal Gazette ("Bundesgesetzblatt") of 2017 Part I nr. 48, published in Bonn on July 21, 2017 and comes into force January 13, 2018. Source of German legislation.
  • France: Source of French legislation.
  • Ireland: S.I. No. 6 of 2018 — European Union (Payment Services) Regulations 2018 came into force January 13. Source of Irish legislation.