The last decade has seen the development and advancement of various payment technologies. The latest addition is Payment Services Directive 3 (PSD3), which was formed after Payment Services Directive 2 (P2D2) and Electronic Money Directive (EMD2) were repealed and updated in 2023.
PSD3 is a regulation that fortifies the open banking framework in the EU. With it, financial institutions such as banks must now provide a dedicated customer interface to make payments safer. And the potential outcome? Consumers can enjoy better experiences by making faster, cheaper, and more secure payments. If you’re eager to learn how PSD3 might achieve this, read on.
Data Transparency and Control
EU’s latest PSD3 leverages state-of-the-art data privacy and protection features, including Strong Customer Authentication (SCA). This minimizes the chances of fraud in financial institutions.
Again, banks, customers, and third-party payment service providers can effortlessly access accurate data to make informed decisions. With enhanced transparency in the financial ecosystem, it’s now much easier for all parties involved to build trust and reinforce the industry’s integrity.
Partnerships With FinTech Companies
Thanks to PSD3, FinTech companies and banks are anticipated to collaborate more often to get the most out of open banking. By joining forces, these organizations can provide high-quality financial solutions that meet consumers’ requirements. This also gives customers more freedom to work with institutions they can trust and bank on.
PSD3 could be the future of payments for EU residents. With it, customers are set to enjoy efficient and highly secure transactions.