Jurisdiction(s):
European Union

EU PSD2 explained: scope, exclusions, consumer rights, TPP access, SCA, EBA RTS/ITS, and the path to PSD3/PSR

Published by a LexisNexis EU Law expert

Practice notes

Aims of PSD2

The Second Payment Services Directive (PSD2) took effect in January 2016, with application from 13 January 2018. Since then, various delegated acts and regulatory technical standards have been issued and adopted. PSD2 folded in, repealed and replaced the original Payment Services Directive 2007/64/EC (PSD1). Its core objectives are to foster competition, bolster consumer protection and build a single payments market across the European Economic Area (EEA). It also captures a broader array of payment systems, with far‑reaching consequences for market participants.

Changes introduced by PSD2

PSD2 scope extended to all currencies and one-leg transactions

PSD2 widens conduct of business and transparency rules to consumer transactions with one leg in the EU—payments to or from third countries where at least one payment services provider (PSP) is in the EU. PSPs may still disapply certain information and conduct duties when serving business clients. The regime covers intra‑EEA and one‑leg transactions in any currency, not only EEA currencies.

PSD2 changes to the scope of the exclusions

PSD2 adjusts the exclusions that applied under PSD1, including the:

electronic communications exclusion...

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Bill McCaffrey

CMS

Bill McCaffrey is a partner in CMS's Financial Services and Products team and Head of its Consumer Credit practice. Consistently top ranked in the Chambers UK legal directory, he is singled out for his in-depth understanding of the market. He focuses on legal and regulatory issues relating to secured and unsecured loans, instalment credit, leasing, asset finance, payment services and electronic money. Before joining CMS Bill spent 14 years as a senior in house lawyer at Abbey National and First National Bank...

James Dickie

CMS Cameron McKenna Nabarro Olswang LLP

James is a partner in the CMS Financial Services Regulatory team. James advises a wide range of both traditional and innovative financial service providers, with a particular focus on consumer financial products, and the payment service, banking and consumer credit industries. James has particular expertise in advising firms with unique distribution strategies (whether they be technology based or otherwise) and who are offering novel retail banking solutions - advising a wide range of payments, savings account and credit providers, including retail banks, challenger fintechs, and payment instrument issuers, navigate the constantly shifting regulatory environment....

Web page updated on 21/05/2026

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