03/09/25
The European Union is set to overhaul its payment services framework with the introduction of PSD3 and the Payment Services Regulation (PSR). These legislative changes aim to enhance security, promote innovation, and ensure consumer protection in the digital payments landscape.
📜 What Is PSD3?
PSD3 is the proposed revision of Directive (EU) 2015/2366 (PSD2), introduced by the European Commission on 28 June 2023. It seeks to modernise the EU’s payment services rules, focusing on authorisation, supervision, and transparency for payment and electronic money institutions. Concurrently, the Commission proposed the PSR, a regulation designed to establish uniform requirements for payment services and electronic money services across the EU.
⚖️ Key Regulatory Changes
• Expanded Scope: PSD3 broadens the definition of payment service providers (PSPs) to include electronic money institutions (EMIs), integrating them under a single regulatory framework.
• Enhanced Consumer Protection: The directive introduces stricter requirements for transparency, information provision, and consumer rights, aiming to bolster trust in digital payments.
• Stronger Supervision: PSD3 grants national competent authorities stricter supervisory tools to ensure compliance and address emerging risks in the payment sector.
🔍 Implications for Fintechs
Fintech companies operating in the EU will need to adapt to these regulatory changes by:
• Reviewing Licensing Requirements: Ensuring that their operations align with the new definitions and requirements for PSPs and EMIs.
• Enhancing Compliance Frameworks: Implementing strong systems to meet the increased transparency and consumer protection standards.
• Preparing for Supervision: Anticipating closer scrutiny from national authorities and preparing for potential audits or assessments.
✅ Conclusion
PSD3 and the PSR represent significant steps towards a more secure and transparent digital payments ecosystem in the EU. Fintechs must proactively engage with these regulatory developments to ensure compliance and maintain a competitive advantage. NUR-Legal.com is well-positioned to provide expert legal guidance and support to fintech companies navigating these changes.
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Emil Korpinen