Payment Services Directive
The Payment Services Directive1 (PSD) came into force in 2007 to help develop the Single Euro Payments Area (SEPA) by regulating payment services payment service providers throughout the European Union (EU) and the European Economic Area (EEA).
PSD was aimed at increasing competition and encouraging non-banks to participate in the payments industry, besides enhancing the security and transparency of payment transactions for consumers across the areas.
PSD1 was adopted into national legislation by all EU and EEA member states by 2009, and was updated in 2009 and 2012. In 2013, PSD was reviewed by the European Commission and in October 2015, PSD2 was adopted to create a safer and more innovative European payments system.