PSD2 (Payment Services Directive 2)

PSD2, or the Payment Services Directive 2, is a European regulation designed to enhance payment services and promote innovation in financial technology. It aims to increase competition by allowing third-party providers to access bank customers' accounts (with their consent), enabling new services like more efficient payment solutions and personal finance management apps. PSD2 also strengthens security measures for online payments, protecting consumers from fraud. Ultimately, it fosters a more open and secure payment ecosystem, benefiting both consumers and businesses by providing more choices and better services.