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Payment Services Directive 2

The Payment Services Directive (PSD) is a key piece of payments-related legislation in Europe. The Payment Services Directive 2 (PSD2) aims to build further on PSD by increasing competition, bringing new types of payment services into scope, enhancing customer protection and security and extending the reach of the Directive. EU member states are obliged to implement PSD2 requirements into local law by January 13, 2018.

PSD2 expands the scope of PSD by including the following types of payments:

  • Payments in any currency between European Economic Area (EEA)-domiciled payment service providers (PSP).
  • Transactions in any currency where one of the PSPs is located outside the EEA (sometimes referred to as one leg out transactions).

PSD2 will increase competition by introducing new providers (third party providers (TPPs)) and new payment services (payment initiation and account information). PSD2 also requires PSPs to use strong customer authentication when a payer accesses its payment account online or initiates a payment transaction.

We will continue to keep clients informed regarding further developments.

Note: PSD2 will impact client organizations that make or receive payments into or from accounts held in EEA countries.

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