European Union (EU) Payment Services Directive (PSD2)

The EU Payment Services Directive 2 (PSD2) is a regulation that modernizes payments across Europe. It aims to enhance security, protect consumer data, and encourage innovation by opening up payment services to third-party providers. This means banks must securely share customer account information with authorized financial technology firms (with customer consent), enabling new services like budgeting apps or easier online payments. PSD2 also enforces stricter security measures to prevent fraud and strengthens consumer rights, making payments safer and more competitive across the European Union.