The Payment Services Directive 3 (PSD3) is a EU directive that builds on and repeals the revised Payment Service Directive (PSD2) and the E-Money Directive (EMD), as part of a broader framework together with the Payment Services Regulation (PSR). PSD3 focuses on authorization, supervision, and prudential requirements of Payment Institutions, aiming to ensure a more consistent rules and oversight across the EU.
What is the goal of PSD3?
By merging the regulatory framework for payment institutions and e-money institutions, one aspect of PSD3 is to simplify governance and operations for institutions operating across both areas, while ensuring consistency and supervisory clarity and fostering innovation and competition.
How will PSD3 be implemented in EU Member States?
As a directive, PSD3 requires implementation into national law by all EU Member States.
Timeline and status of the PSD3:
As of March 2026 PSD3 is awaiting formal adoption by European Parliament and Council. Once adopted Member States will need to transpose it into national law, which is expected to take approximately 18-24 months.