PSD2, which comes into force on the 13th January 2018, is a revised version of the Payment Services Directive 1 that came into force across the European Union on the 1st November 2009.
The Payment Services Directive and the revised version of regulation 2560/2001 are the legal framework behind the Single Euro Payments Area (SEPA) project which is a Banking industry driven project.
PSD 2 is designed to make payments safer, increase consumer protection, foster innovation and competition while ensuring a level playing field for all players, including those payment services providers which were not being regulated under the previous PSD1 regime.
The Payment Services Directive generates more competition in the European payment markets by removing market entry barriers and guaranteeing fair market access. It also provides a simplified and fully harmonised set of rules with regards to the information requirements and the rights and obligations linked to the provision and use of payment services.
What changes should a BOV customer expect as a result of the revised Payment Services Directive (PSD2)?