Payment Service Directive (PSD2)

The Payment Services Directive 2 (PSD2) is a European regulation that improves online payments’ security and promotes innovation. It allows third-party providers, like fintech companies, to access your bank account (with your permission) to offer new services such as payment initiation or account information. This increases competition, better prices, and more options for consumers. PSD2 also introduces stronger security measures, like two-factor authentication, to protect customers from fraud. Overall, PSD2 aims to make digital payments safer, more transparent, and more flexible within the European Union.