The Payment Services Directive 2 (PSD2) became effective in the European Union as of January 13, 2018. These revised rules replace the first Payment Services Directive, which was previously in place from December 25, 2007.
The purpose of PSD2 is to provide stronger consumer protections when making electronic payments, especially in online purchases, promote fintech innovations in online and mobile payments as well as open banking applications, and improve the efficacy and safety of cross-border payments within the EU.
Some compliance issues with PSD2 implementation are as follows:
- Competition between traditional banking and fintech start-ups: Santander chair calls EU rules on payments unfair
- Open banking and consumer protections: What does the future hold for payments in a post-PSD2 world?
- Fintech developments and financial sector compliance supervisory agendas: Here’s how the regtech landscape is evolving to address increasing compliance needs
- Impact on financial sector from increasing banking digitalization: The world after PSD2: Compliant or competitive?
- Artificial intelligence and client acceptance in next-generation banking: Why banks are betting smart money on AI in bid to stay on top
For similar posts on implementation issues with other EU laws, check out this post on the conduct principles and objectives of the Markets in Financial Instruments Directive II (MiFID II) and this post on compliance issues with General Data Protection Regulation (GDPR) implementation.