PSD3 Directive

Definition ∞ The PSD3 Directive is a proposed European Union regulation that aims to update and supersede the current Payment Services Directive (PSD2). This new directive seeks to modernize the legal framework for payment services, addressing technological advancements, enhancing consumer protection, and improving security measures in digital payments. It is expected to clarify rules for new payment service providers, strengthen fraud prevention, and potentially integrate aspects of decentralized finance into the regulatory scope. PSD3 aims to ensure the EU’s payment market remains competitive and secure.
Context ∞ The introduction of the PSD3 Directive signifies the European Union’s commitment to maintaining a robust and adaptable regulatory environment for payment services. Discussions surrounding its implementation focus on the potential impact on financial institutions, fintech companies, and digital asset service providers. The directive’s final provisions will significantly influence innovation and operational compliance across the European payments ecosystem.