What’s the deal with PSD2?
If you’ve been following any conversations on payments or fintech, you’ve probably heard about ‘PSD2’. It’s applicable from January 2018 and there’s been a lot of discussion about all the changes it could bring, but what exactly is PSD2?
First, let’s take a step back. The first Payment Services Directive (PSD) came into force in 2009. The Directive was developed by the European Commission and then transposed into national law by each of the Member States. The aims of that first Directive were to:
- Create an integrated payments market across the EU and encourage competition and innovation
- Create a new category of regulated firms that could provide payment services
- Establish a set of rights and obligations that apply both to payments providers and to consumers
Many companies, including GoCardless, took advantage of the opportunities PSD presented for new players to provide innovative payment services and to expand across the EU.