The EU Payments Package is a major EU legislative initiative that includes two key proposals: PSD3 and PSR. The proposed Framework for Financial Data Access (FiDA) was published alongside PSD3 and PSR but is no longer included in the EU Payments Package due to FiDA focusing mainly on financial data sharing aspect and not payment services specifically.
What is the goal with the EU Payments Package?
The overall goal of the Payments Package is to make the EU financial system safer, more competitive, innovative and consumer-friendly. In practice, the payment service package aims to:
- Strengthen user protection and trust in payments
- Strenghten supervision and enforcement across EU Member States
- Improve direct and indirect access to payment systems and bank accounts for non-bank PSPs
What is the rationale behind the EU Payments Package?
The Payments Package builds on the revised payment services directive (PSD2), adopted in 2015. PSD2 was a major step forward in the payments market, e.g. laying the foundation for open banking and improving consumer protection for electronic payments through Strong Customer Authentication (SCA). However, inconsistencies in its implementation across the EU, combined with rapid technical developments, created the need for updated legislative framework. This led to the introduction of the EU Payments Package.