Following negotiations between the European Commission, the European Parliament and the Council of Ministers, an agreement has been reached on the revised Payment Services Directive (PSD2). The agreed proposal is set to update EU rules on payment services to improve security, widen consumer choice and allow for payment innovation.

The EC welcomed the agreement with a press release on 5 May 2015, which provides background on the development of PSD2 since the initial proposal in 2013 (see IP/13/730and MEMO/13/719). A corresponding press release issued by the European Parliament on the same day sets out how the regulatory framework will achieve the aims of the Committee. Inter alia it is intended that consumers paying through online accounts will be able to use authorised payment software or devices from third parties, and PSPs will be required to adopt authentication technologies and transmit user data through secure channels to reduce fraud.

What this means for you?

Lead MEP Antonio Tajani stated that “the new regulatory framework will reduce costs, improve the security of payments and facilitate the emergence of new players and innovative new mobile and internet payment methods.”

The updated rules have now been converted to an agreed text and will be put to a plenary vote. The outcome will also need to be endorsed by EU member states.