PSD2’s predecessor regulation, PSD1, was introduced in 2007, to a very different kind of payments market. Since then, a step-change in technological development has thrown up a multitude of new payment methods, channels, and operators.
PSD2 takes account of the changes that have occurred since 2007; it licenses and regulates new market players (or Third Party Providers as the directive refers to them); strengthens customer authentication requirements for online, remote and electronic payments; and widens the geographical and currency-scope of existing regulations.
However, PSD2 is likely to be far more than a mere regulatory update. Writing in TFR, Shakrokh Moinian, Deutsche Bank’s Global Head of Cash Management Corportates, explains how PSD2 could foster further change in the payment space – acting as a catalyst for a “new, more open, digital payments market in Europe”.
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