The Payment Services Directive (PSD2)

The Payment Services Directive 2 (PSD2) is a European regulation that enhances the security and convenience of online and electronic payments. It requires banks to share customer account information securely with authorized third-party providers, enabling services like account aggregation and instant payments. PSD2 also mandates stronger security measures, such as multi-factor authentication, to protect consumers from fraud. Its goal is to promote innovation, competition, and trust in digital payments, making transactions safer, more transparent, and easier to access across the European Union.