Introduction
On 28 June 2023, the European Commission published a proposed legislative package that seeks to modernise and harmonise the existing regulatory framework for electronic payments throughout the European Union (EU) and European Economic Area (EEA), currently regulated by the Second Payment Service Directive (PSD2).
The legislative package included the Third Payment Service Directive (PSD3) and the Payment Services Regulation (PSR1). Together these proposals seek to modernise and strengthen the existing framework with the aim of spurring further innovation and bringing the payments and the broader financial sector into the ‘digital age’.