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.