August 24, 2016
European Parliament Passes PSD2
Oct. 12, 2015
More than two years after a European Commission (EC) proposal, the European Parliament has officially adopted the revised Directive on Payment Services (PSD2), clarifying rules for online payment providers, addressing multilateral interchange fees and promoting the use of online and mobile payments. The PSD2 overhauled security requirements for electronic payments to better protect consumers’ financial data and prohibits surcharges on card payments regardless if the purchase is made in a store or online. The revised directive is a step toward a Digital Single Market , through which European leaders hope to remove barriers to cross-border e-commerce.
“We have already used EU competition rules to ensure that new and innovative players can compete for digital payment services alongside banks and other traditional providers,” said Margrethe Vestager, European Commissioner responsible for competition policy. “Today’s vote by the Parliament builds on this by providing a legislative framework to facilitate the entry of such new players and ensure they provide secure and efficient payment services. The new Directive will greatly benefit European consumers by making it easier to shop online and enabling new services to enter the market to manage their bank accounts, for example to keep track of their spending on different accounts.”
The Parliament approved the measure by a vote of 578 votes to 29, with 52 abstentions.
Read the text of the PSD2 here .