PSD3 (Payment Services Directive 3) is the European Union's updated framework for payment services, building on PSD2 with enhanced Open Banking provisions, fraud prevention requirements, and clearer rules for payment institutions.

How is PSD3 different from PSD2?

PSD3 strengthens account access for TPPs, introduces enhanced fraud monitoring requirements, clarifies IBAN/name verification rules, and expands oversight of non-bank payment institutions.

When will PSD3 take effect?

PSD3 is progressing through EU legislative process. Companies should monitor EBA guidance and national transposition timelines, typically allowing 18-24 months for implementation after adoption.

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PSD3 and the Future of European Payments

A clear guide to PSD3, the next EU payment services directive, covering key changes, timelines, and what FinTech and SaaS companies should prepare for.

Fynteq Team12 March 2026

Summary

PSD3 expands and refines EU payment regulation, strengthening Open Banking, improving fraud prevention, and creating new compliance obligations for payment institutions and their technology partners.

Definition

PSD3 (Payment Services Directive 3) is the European Union's updated regulatory framework for payment services, replacing and expanding upon PSD2 with stronger consumer protection, enhanced Open Banking access, and updated requirements for payment institutions.

Key Changes from PSD2

Enhanced Open Banking

PSD3 aims to improve TPP access to bank account data and payment initiation services, with clearer liability rules and standardized API requirements across member states.

Fraud Prevention

Stronger requirements for real-time fraud monitoring, IBAN/name verification (Confirmation of Payee), and transaction risk assessment, particularly for instant payments.

Payment Institution Oversight

Expanded regulatory scope for non-bank payment institutions, e-money institutions, and embedded finance providers operating under payment licenses.

Consumer Protection

Enhanced refund rights, clearer dispute resolution, and stricter rules on surcharging and payment method acceptance.

Who Is Affected

Entity	Impact
FinTech startups	Updated licensing and compliance requirements
B2B SaaS with payments	Indirect impact via payment provider obligations
TPPs / Open Banking providers	Enhanced API access rights and obligations
Marketplaces	KYC/AML and payment institution rules may apply
Banks	Updated AIS/PIS implementation requirements

What to Prepare

Audit current PSD2 compliance: gaps will likely widen under PSD3
Review Open Banking integrations: ensure API access meets new standards
Implement IBAN verification: Confirmation of Payee for outbound payments
Update fraud monitoring: real-time transaction risk scoring
Monitor national transposition: Germany (BaFin) will publish specific guidance

Business Outcomes

Companies that prepare early for PSD3 avoid rushed compliance projects, maintain uninterrupted payment operations, and can market compliance readiness to enterprise customers.

PSD3 PSD2 Open Banking Regulation

Sources

• European Commission, PSD3 Proposal
• European Banking Authority

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Frequently Asked Questions

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