From PSD2 to PSD3: Expert Interview on Three Key Benefits for Entrepreneurs

In June 2023, the EC published the draft proposal for a new Payments Services Directive, dubbed PSD3, paving the way for a more transparent, secure, and customer-centric financial landscape. In a conversation with L’Echo, Jeroen De Wit, CEO at Teamleader and Marie Costers, VP at Isabel Group, shared their insights on the main benefits for entrepreneurs.

Three Advantages for Entrepreneurs

1. Enhanced Usability: The new directive extends data sharing to continuous access to real-time financial data, moving beyond the former limit of four updates a day.
2. Greater Transparency: PSD3 enables users to actively monitor all granted consents, clarifying which tools or entities can access their financial data, through a dashboard at their bank.
3. Improved Fraud Protection: PSD3 requires IBAN verification for all transactions, except for instant payments which are mandated through a designated instant payment regulation. This measure ensures the IBAN number matches the beneficiary’s name, thus reducing potential frauds.

Untapped Potential Under PSD3

The directive offers significant improvements in user-friendliness, transparency, and fraud prevention. However, Jeroen De Wit and Marie Costers noted that PSD3 still has some gaps including:

1. An Elusive Framework for PSPs: PSD3 doesn’t encompass certain data sources, such as credit card data. This omission restricts entrepreneurs from leveraging more data.
2. Rethinking Data Sharing Economics: The current free data sharing model might not be permanent. While PSD2 requires banks to provide some information for free, PSD3 might allow banks to charge for certain data services.
3. The Quest for Standardization: Despite the hopes that PSD3 would standardize data streams, unharmonized data across banks remains a challenge.

The PSD2 to PSD3 transition captures the financial sector’s drive towards enhanced transparency, optimized usability, and fortified security. Entrepreneurs find themselves ready to reap these benefits. However, the quest for data uniformity and comprehensive frameworks remains ongoing. Dive deeper into the complete interview in Dutch or in French.