PSD2 vs PSD3
PSD2 and PSD3 are easy to mix up. Here are both definitions from the HighRisk Media glossary side by side.
Comparison table
| Term | PSD2 | PSD3 |
|---|---|---|
| Full name | Payment Services Directive 2 | Payment Services Directive 3 |
| In short | PSD2 is EU Directive 2015/2366, which regulates payment services in the European Economic Area, introduces Strong Customer Authentication (SCA), and opens access to bank data via APIs. | PSD3 is the proposed third EU Payment Services Directive, intended to replace PSD2 and strengthen fraud protection, authentication requirements, and open banking rules. |
| Verticals | Fintech | Fintech |
What is PSD2?
PSD2 (Payment Services Directive 2) is the second European directive on payment services. It defines who may provide payment services in the EU, what security requirements they must meet, and how data exchange between banks and third-party services is organized. The directive has applied since January 2018 and is binding on all EEA member states, although its provisions are transposed into national legislation.
What is PSD3?
PSD3 (Payment Services Directive 3) is a package of proposals from the European Commission on regulating payment services in the EU. It proposes updates to the rules that govern payment institutions, acquiring, open banking, and the work of payment service providers (PSPs). The package includes the directive itself and a separate regulation (Payment Services Regulation). Some provisions are moved from the directive into a directly applicable regulation to reduce differences between countries.