Payment Services Directive 2 (PSD2)

Payment Services Directive 2 (PSD2) is a European regulation that modernizes and enhances the security, innovation, and competition in electronic payments. It requires banks to open their payment infrastructure to authorized third-party providers, enabling new services like account aggregation and payment initiation. PSD2 aims to protect consumers from fraud by mandating stronger security measures and increasing transparency. Overall, it fosters a more open, secure, and competitive payment ecosystem, benefiting both consumers and businesses through better services and increased choice.