Directive on payment services in the internal market
25 November 2015
European Parliament and the Council of the European Union
Directive (EU) 2015/2366 (Payment Service Directive 2 — PSD 2) provides the legal foundation for the further development of a better integrated internal market for electronic payments within the EU. It puts in place comprehensive rules for payment services with the goal of making international payments (within the EU) as easy, efficient and secure as payments within a single country.
Specifically, it sets out rules concerning: strict security requirements for electronic payments, transparency in conditions and information requirements for payment services, rights and obligations of users and providers of payment services. The Directive also seeks to open up payment markets to new entrants leading to more competition, greater choice and better prices for consumers.
Furthermore, it provides the necessary legal platform for the Single Euro Payments Area (SEPA). Directive 2015/2366 also strengthens the role of the EBA in developing an accessible central register of authorised payment institutions, in resolving disputes between national authorities and developing regulatory technical standards.
The Directive is complemented by Regulation (EU) 2015/751which puts a cap on interchange fees charged between banks for card-based transactions. Directive 2015/2366 has applied since 12 January 2016. EU countries had to incorporate it into national law by 13 January 2018. From that date, it has repealed Directive 2007/64/EC (PSD).