Compliance
PSD2

PSD2 — Open Banking and Payment Services in the EU

Guide to the Payment Services Directive 2 — open banking APIs, strong customer authentication, and third-party payment providers.

What is PSD2?

The Payment Services Directive 2 (EU) 2015/2366 regulates payment services and payment service providers in the EU. It introduced mandatory Strong Customer Authentication (SCA) for electronic payments and open banking — requiring banks to grant licensed third-party providers access to customer payment accounts via secure APIs. PSD2 has been in full application since September 2019, with SCA enforcement from December 2020. PSD3 is currently in legislative process.

Who It Applies To

All payment service providers in the EU: banks, electronic money institutions, payment institutions, post offices, Account Information Service Providers (AISPs), Payment Initiation Service Providers (PISPs), and card payment service providers.

Key Articles & Obligations

Article 1

Article 4

Article 5

Article 11

Article 33

Article 66

Article 67

Article 97

Article 98

Key Deadlines

Full application

14 Sept 2019

PSD2 rules on open banking access became applicable.

SCA enforcement

31 Dec 2020

Strong Customer Authentication requirements became enforceable.

Fines & Enforcement

Determined by Member States. EBA sets regulatory technical standards. PSD3 will update the enforcement framework.

Open Banking Under PSD2

PSD2 introduced mandatory access to bank accounts for authorised third-party providers.

  • Banks must provide dedicated APIs for AISP and PISP access to customer payment accounts
  • Customers must give explicit consent before third-party providers can access their accounts
  • AISPs can retrieve account information and balances on behalf of customers
  • PISPs can initiate payments directly from the customer's bank account
  • Banks cannot charge third-party providers for account access

Strong Customer Authentication (SCA)

PSD2 requires two-factor authentication for most electronic payments above €30.

  • SCA requires two of three factors: knowledge (password), possession (phone), inherence (fingerprint)
  • Applies to electronic payments above €30, with limited exemptions for low-risk transactions
  • Banks must implement secure communication standards (RTS on SCA and CSC)
  • Third-party providers must also comply with SCA when initiating payments

How Law4Devs Helps with PSD2 Compliance

Law4Devs provides the full PSD2 as structured JSON. Filter by provider type, obligation category, or topic. Cross-reference with DORA for ICT risk management and MiCA for crypto-asset payment services.

Related Regulations

Query PSD2 via API

GET /v1/frameworks/psd2/articles
200 OK · structured JSON · official EUR-Lex source

Frequently Asked Questions

What is PSD2?

The Payment Services Directive 2 (EU) 2015/2366 is the EU directive regulating payment services and payment service providers. It introduced two major innovations: mandatory Strong Customer Authentication (SCA) for electronic payments, and open banking — requiring banks to grant licensed third-party providers access to customer payment accounts via secure APIs. PSD2 replaced the original PSD1 and has been in full application since September 2019, with SCA enforcement from December 2020.

Who does PSD2 apply to?

PSD2 applies to all payment service providers operating in the EU: credit institutions (banks), electronic money institutions, payment institutions, post offices providing payment services, and the two new categories it created — Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs). Account servicing payment service providers (typically banks) must provide AISPs and PISPs with access to customer accounts through dedicated interfaces when customers give consent.

What are the key obligations under PSD2?

Banks must implement secure APIs for third-party access to payment accounts and apply Strong Customer Authentication (two of three factors: knowledge, possession, inherence) for electronic payments above EUR 30. Third-party providers must be authorised or registered with their national competent authority. All providers must follow strict incident reporting timelines, maintain complaint procedures, and comply with the EBA Regulatory Technical Standards on SCA and common and secure communication. PSD3 is currently in legislative process to update these rules.

How does Law4Devs help with PSD2?

Law4Devs provides the full PSD2 text as structured JSON via API. Filter by provider type (AISP, PISP, bank), obligation category, or topic (SCA, open banking, incident reporting). Access specific provisions on authorisation requirements, passporting rules, and customer protection. Cross-reference with DORA for ICT risk management and with MiCA for crypto-asset payment services. Ideal for fintech compliance teams building regulatory mapping tools.

Access PSD2 as Structured JSON

All articles, recitals, and amendments — queryable, filterable, and always up to date.