What is PSD3? What the EU's next payments rules mean for fintechs
By SendPay Business · · 2 min read
PSD3 is the EU's planned update to PSD2, the law that set the rules for payment firms and opened up banking data. The European Commission proposed it in June 2023 together with a new Payment Services Regulation (PSR), which would apply directly in every EU country.
Why a new law?
PSD2 made open banking and strong customer authentication standard, but fraud moved on and open banking connections stayed patchy. PSD3 and the PSR aim to close those gaps and make the rules the same across the EU.
The main proposed changes
- E-money firms and payment institutions brought under one set of rules.
- A check that the payee's name matches the account number (IBAN) before a transfer is sent.
- Better, more reliable access to bank data for open banking providers.
- More sharing of fraud information between payment firms.
- Clearer rules on fees and charges shown to customers.
When it applies
The texts go through EU negotiation before they're adopted, and firms then get a transition period. Check the European Commission's website for the latest status before planning around a date.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners who handle the regulatory side.
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Build my platform →Questions people ask
What is a name check on payments?
The UK's version is Confirmation of Payee.
What is Confirmation of Payee? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.