Making Sense of Payment Services Directive II: Your Guide to Safer, Smoother Transactions

Summary:

The Payment Services Directive II (PSD2) is a regulation introduced by the European Union in 2018 to create a secure and unified payments market in Europe. It has introduced two new players: Third-Party Payment Service Providers (TPPs), including Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs), which allows for direct payments and access to financial data. The regulation emphasizes data protection, with features such as Strong Customer Authentication (SCA) and explicit consent, to ensure consumers' financial data remains secure. PSD2 aims to democratize data, improve security, and enhance the customer experience, making banking more efficient and user-friendly.