PSD2 Definition

Short for Payment Service Directive 2. It is a directive by the European Union and it’s puruse in regard to the payments industry was to increase pan-European competition with participation also from non-banks, and to provide for a level playing field by harmonizing consumer protection and the rights and obligations for payment providers and users. The most important aspect is that third party groups are able to have access to customer accounts. The directive is criticized for only being applied in the European Economic area but not to transactions to or from third countries

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