The Council of the EU adopted the Payment Services Directive 2 (PSD2) in November 2015, following its adoption by the European Parliament in October 2015. The text of PSD2 was published in the Official Journal of the EU on 23 December 2015. PSD2 entered into force on 12 January 2016.

What this means for you

The deadline for member states to transpose PSD2 into their national laws and regulations is 13 January 2018.

Among other provisions, Payment Service Providers (PSPs) will need to be transparent in respect of various matters, such as account services and charges, major operational or security incidents and complaint handling. The new legislation will also bring in new data security obligations for operators that support PSPs, namely Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs), who were previously exempt under PSD1.