PSD2
Payment Services Directive 2
Definition
The EU directive regulating payment services and payment service providers, introducing requirements for strong customer authentication (SCA), open banking through access to payment accounts, and enhanced consumer protection for electronic payments.
Regulatory Context
PSD2 enabled the open banking ecosystem by requiring banks to provide third-party providers (AISPs and PISPs) with access to customer account data via APIs. PSD3/PSR is under development to address remaining gaps and update the framework.