EUROPE
Europe has been a trailblazer in Open Banking since implementing the Payment Services Directive 2 (PSD2).
In 2018, PSD2 made open banking a legal requirement, sparking data sharing between banks and third parties and fostering innovative financial services. Now, the EU is taking open banking to the next level with the proposed PSD3. PSD3 aims to combat payment fraud, enhance consumer rights, ensure equal access to payment systems, expand Open Banking services, and drive innovation. These regulatory updates will boost Open Banking adoption, improve API performance, and strengthen law enforcement.
The EU's commitment to modernizing the retail payments industry and prioritizing consumer interests is evident. By promoting API quality and security, the EU aims to create a competitive and trustworthy open banking ecosystem benefiting financial institutions and consumers.
Updated: November 2023
