EU Regulation: PSD3 - What can we expect?

The PSD3 (Payment Service Directive) is an updated directive by the European Union. It will supersede the current PSD2 introduced in 2015.

Protection: We are likely to see enhanced rules for better consumer protection and provisions for more competition in electronic payments. Therefore increasing further dynamism in the financial arena, especially in the FinTech space, which is likely to see further product and service innovation.
Payment Fraud: We are likely to see increased rules surrounding IBAN/VBAN name matching for credit/debit transfers.
Monitoring: There will be a higher emphasis on transaction monitoring, linked with financial fraud.
Consumer rights: There will be a strong emphasis on financial institutions to provide better information concerning ATM charges, credit transfers, blocked funds and remittances.
Levelling the playing field: Grants non-bank PSPs access to all EU payment systems and the right to hold a bank account.
Proposals for simplification of regulations: e-money and payment institutions
Enforcement of Rules: Detailed guidelines for rule enforcement and a list of specific breaches with sanctions.
Capital Requirements: Outlines capital requirements for payment and e-money institutions.
Reapplication for Existing Institutions: Requires existing institutions to reapply under new PSD3 requirements.
Financial Data Access: Establishes a framework for responsible access to financial data in open finance

Legislation is expected to pass in late 2024. EU/EEA member states will then have to integrate the legislation into national law.

Further information can be found here.