What is the PSD2 implementation timeline?

2015-11-25: Council of the European Union passed PSD2. 2018-01-13: PSD2 began entering into force. 2019-09-14: SCA and third-party access requirements in force. 2020-12-31: PSD2 transition period concluded

PSD2 Open Banking: Payment Services Directive 2 Guide |...

🌍

Jurisdiction

European Union

📅

Effective Date

2018

Jan 13, 2018

✅

Full Compliance

2019

Sep 14, 2019

🏛️

Regulator

European Banking Authority

Overview

PSD2 is the EU regulation that created open banking in Europe by requiring banks to provide secure API access to licensed third-party providers (TPPs). The revised Payment Services Directive introduced Strong Customer Authentication (SCA) and created new payment institution categories (AISPs, PISPs, CBPIIs).

Scope & Coverage

AISPISCBPII

PSD2 and Open Banking

PSD2 open banking refers to the ecosystem enabled by the Payment Services Directive 2 in the European Union and EEA. By requiring banks to offer dedicated interfaces (APIs) to licensed Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs), PSD2 created a regulated way for consumers and businesses to share account data and initiate payments without sharing login credentials.

PSD2 open banking differs from the UK Open Banking framework: the UK has its own CMA-mandated standards and implementation body, while EU countries implement PSD2 through national competent authorities and optional standards such as the Berlin Group NextGenPSD2. For a comparison of global frameworks, see the Open Banking regulations guide.

Frequently asked questions

What is PSD2 in open banking?

PSD2 is the European Union regulation that created open banking in the EU and EEA. It requires banks to provide secure API access to licensed third-party providers (TPPs) for account information (AIS) and payment initiation (PIS), with Strong Customer Authentication (SCA).

How does PSD2 relate to open banking?

PSD2 is the legal foundation for open banking in Europe. It mandates that banks expose APIs so licensed TPPs can access accounts and initiate payments with customer consent, enabling the open banking ecosystem of fintechs and aggregators.

Is PSD2 the same as UK Open Banking?

No. PSD2 is the EU directive; UK Open Banking is the UK’s separate framework (CMA Order and FCA), which went beyond PSD2 with standardized APIs and a dedicated implementation entity. After Brexit, UK open banking is regulated domestically.