Compliance Consultancy
Consultancy and management firm

Payment Service Directive 2

Compliance Consultancy Financial Crime Payment Service Directive 2

The idea behind the Payment Service Directives (PSD) aims at simplifying the lives of European consumers and open the market to new players, thus enhancing competition.

The EU adopted the first Payment Services Directive (64/2007) in 2007. The key topics in the first PSD included the fact that the Payment Service Providers (PSP) must provide clear information to their users prior and after the execution of the service. Moreover, the transactions in EU currencies have to be executed in one working day. The PSPs have to correct the transaction or refund the payer who used the service if the transaction was not completed or was wrong.

The need to answer to a revised technological framework

Since 2007, the technological development and the growth of electronic and mobile payments have underlined the need for a revised legal framework at the EU level. As a result, in 2016, the second Payment Services Directive (2366/2015) entered into force and the member states had to implement it by January 2018. The new directive aims to extend the already existing rules. The second PSD introduced some updates on the first directive:
  • More focus on internet and mobile payments and the protection of consumers financial data.

  • Extension of the scope of the directive to EEA payments and One Leg Out transactions in any currency and not only EEA currencies.

  • Expanding the EU market to innovative payment services and new providers, such as FinTechs. These players are also called third party payment services providers (TPPs). Need for change is becoming more of a reality for banks and new players on the market. Some international banks already invested in FinTechs under the motto "if you cannot beat them, join them". For the consumers, a range of possibilities will arise in managing their financial transactions online. The new players (Account Information Service Providers - AISP, Payment Initiation Service Providers - PISP) and new startups will try to gain market share, offering products that were originally part of the traditional banking system.

  • At the same time, it introduces enhanced consumer rights, including reduced liability for non-authorised payments, removal of surcharges for the use of a consumer credit or debit card and refund for direct debits in euro. Strong Customer Authentification requirements are clearly stated in the new provisions (art. 97 and after), enhancing the protection of the customer and the transactions.

Was this service page helpful ?  
Insider Dealing - Compliance Consultancy
Insider Dealing

Insider dealing (the term "insider trading" is also frequently used) arises w...

Anti Bribery and Corruption - Compliance Consultancy
Anti Bribery and Corruption

Fighting against dumping and bribery is required for any company. Suspicions of corr...

Screening - Compliance Consultancy

Are you familiar with the term "screening" or are you wondering what does it ...

Sanctions and Embargoes - Compliance Consultancy
Sanctions and Embargoes

Due to globalisation, companies are increasingly exposed to the risk of sanctions, op...

Anti Money Laundering - Compliance Consultancy
Anti Money Laundering

Anti-Money Laundering (hereafter "AML") compliance regulation is a challenge ...

Cybersecurity - Compliance Consultancy

Faced with the outbreak of highly targeted attacks and a highly regulated environment...

Cryptocurrencies - Compliance Consultancy

What are the dangers of cryptocurrencies?Cryptocurrencies are virtual or digital curr...

Politically Exposed Persons - Compliance Consultancy
Politically Exposed Persons

It is essential that your financial company understands the concept of Politically Ex...

MiFID MiFIR - Compliance Consultancy

The Directive 2014/65/EU (hereafter the "Directive") on markets in financia...

Anti Fraud - Compliance Consultancy
Anti Fraud

Fraud is one of the most damaging risks your business can faceWe are in a persistent ...

Common Reporting Standard - Compliance Consultancy
Common Reporting Standard

Where does the Common Reporting Standard (CRS) idea comes from ?The concept of agreei...

Terrorist Financing - Compliance Consultancy
Terrorist Financing

The financing of terrorism is defined as the distribution or collection of funds, in ...

Payment Service Directive 2 - Compliance Consultancy
Payment Service Directive 2

The idea behind the Payment Service Directives (PSD) aims at simplifying the lives of...

Market Abuse - Compliance Consultancy
Market Abuse

Market Abuse is a concept that encompasses unlawful behaviour in the financial market...

Customer Due Diligence - Compliance Consultancy
Customer Due Diligence

The Customer Due Diligence (hereafter “CDD”) investigation is required by EU juri...

FATCA - Compliance Consultancy

Do you know FATCA?The Foreign Account Tax Compliance Act ("FATCA") was enacte...

Know Your Customer - Compliance Consultancy
Know Your Customer

Financial institutions must be able to identify and verify the identity of their cus...

Get in touch with us - Compliance Consultancy
Get in touch !

We'll present you the technology to stop money laundering and terrorist financing

Europol defines Financial Crime as "illegal acts committed by an individual or a group of individuals to obtain a financial or professional advant...

Return to financial crime
Discover Pideeco Compliance Services and Business solutions for your operational business needs
Domain Experts
Vasiliki Karamousali - Pideeco Network Partner
Vasiliki Karamousali
Senior Consultant
Stefano Siggia - Pideeco Network Partner
Stefano Siggia
Senior Consultant
Oscar Canario da Cunha - Pideeco Network Partner
Oscar Canario da Cunha
Associate Director
Anastasia Bidjocka - Pideeco Network Partner
Anastasia Bidjocka
Junior Consultant
The UBO Register in practice | Belgium
Piet De Vreese

Is the UBO Register useful during KYC processes?It was a tedious job to complete the UBO Register for companies. There were a number of start-up problems that made it difficult to transmit all the data on time. We were finally able to do so, but the deadline was ext...

Read more Author What else ?
The UBO Register in practice | Belgium - Pideeco Journal