What is PSD2?

PSD2 refers to the revised Payment Services Directive, a piece of European Union legislation more formally known as Directive (EU) 2015/2366. The ultimate aim of PSD2 is to make financial services both more accessible and better value for the consumer. The regulation breaks down a bank’s monopoly over its customers' account data and allows other businesses to access it, (with customer consent). This enables Third-Party Providers (<a href="/glossarycollection/third-party-provider" style="color:#48277C;" target="_blank" title="Third-Party Provider"><u>TPP</u></a>) to provide their own financial services, increasing competition and driving innovation across the sector.