The European Central Bank’s (ECB) opinion on proposals for a new directive on payment services in the internal market, which would incorporate and repeal the Payments Services Directive (PSD), was published in the Official Journal on 15 July 2014.  The proposed directive, PSD2, is intended to update the existing legal and regulatory framework for payment services in the EEA.  PSD2 was published by the European Commission in July 2013. 

The ECB “strongly supports the objective and content of the proposed directive”, in particular the proposal in PSD2 to introduce two new payment services (payment initiation services and account information services) within the list of payment services.  Improvements suggested by the ECB include the possibility of extending safeguarding requirements to payment institutions regardless of whether they are engaged in payment services or not. 

What this means for you

PSD2 is continuing to progress through the ordinary legislative procedure of the Parliament and the Council of the EU.  If approved, PSD2 must be transposed into national law within two years of its adoption.  It is difficult for institutions to plan effectively when the PSD2 landscape is continually altered, and some certainty as to what is going to be implemented will be most welcome.