Payment Services Directive 2 (PSD2)—one minute guide
Produced in partnership with Bill McCaffrey of CMS
Payment Services Directive 2 (PSD2)—one minute guide

The following Financial Services practice note produced in partnership with Bill McCaffrey of CMS provides comprehensive and up to date legal information covering:

  • Payment Services Directive 2 (PSD2)—one minute guide
  • Aims of PSD2
  • Level 2 and level 3 measures under PSD2
  • Level 2 measures
  • Level 3 measures
  • Key practical points to consider in relation to PSD2
  • PSD2 Essentials and Timeline

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

BREXIT: The UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on payment services regulation, see Practice Note: Impact of Brexit: Payment services and electronic money directives—quick guide.

Aims of PSD2

The Second Payment Services Directive (PSD2) entered into force in January 2016 and applied as of 13 January 2018. Certain regulatory technical standards under PSD2 are not yet in force or effect. PSD2 repeals and replaces the original Payment Services Directive 2007/64/EC (PSD1). The main aims of PSD2 are to increase competition, enhance consumer protections and create a single market for payments across the European Economic Area (EEA). PSD2 brings a wider range of payments systems in scope and has wide-ranging implications for market participants.

Changes introduced by PSD2

PSD2 scope extended to all currencies and one-leg transactions

PSD2 extends the

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