What is PSD2?

Definition of PSD2

The second Payment Services Directive (commonly referred to as PSD2) is a 2015 revision of the European Union’s original Payment Services Directive. This new legislation took effect in January 2018, although some regulations are not expected to be fully rolled out until September 2019 at the earliest.

PSD2 legislation is intended to make banking data more transparent to consumers and expands on the following areas of the Payment Services Directive:

  • improving security using Strong Customer Authentication
  • advancing consumer rights
  • enabling third-party account and payment services such AISPs and PISPs to access customer account information

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