Payment Services Directive
PSD3Also called third Payment Services Directive, payment Services Regulation (PSR)
PSD3 is the EU's third Payment Services Directive. Together with a new Payment Services Regulation, it will replace PSD2 and the E-Money Directive. The directive covers licensing and supervision of payment and e-money institutions, while the regulation sets directly applicable rules on open banking, fraud prevention and consumer rights.
How it works
The European Commission proposed the package on 28 June 2023. Parliament and Council negotiators then agreed final texts, which Parliament's lead committee approved on 5 May 2026. Formal adoption and publication in the Official Journal follow. Most rules apply after a transition period counted from entry into force.
For banks and payment firms, the package brings stronger open banking access with customer permission dashboards, a legal basis to share fraud data and payee name checks on all credit transfers. Consumers gain refund rights where a failed name check leads to fraud. E-money institutions move into the payment institution regime. PSD2 stays in force until the new rules apply.
The rules
Current framework for payment services, including strong customer authentication and third-party access to accounts; applied from 13 January 2018.
Payment service providers in the EUCommission proposals to replace PSD2 and the E-Money Directive; Parliament's lead committee approved the texts agreed with the Council on 5 May 2026.
Payment service providers, e-money institutions and banks in the EUCommon questions
When will PSD3 apply?
PSD3 and the Payment Services Regulation had not been published in the Official Journal as of late October 2026. Parliament lists an indicative plenary date of 14 December 2026. Most rules will apply after a transition period counted from entry into force.
Why is there both a directive and a regulation?
The directive covers licensing and supervision, which member states transpose into national law. The regulation sets conduct rules that apply directly in every member state, which reduces differences in how PSD2 was applied.
Does PSD3 apply in the UK?
No. The UK left the EU before PSD3 was proposed and keeps its own payments regime under the Payment Services Regulations 2017. UK firms serving EU customers through EU entities will be covered.
What does PSD3 change on fraud?
The Commission's proposal extends payee name checks to all credit transfers and gives providers a legal basis to share fraud data. It also gives refund rights where a name check fails or where a fraudster poses as an employee of the victim's own bank.
