Call for evidence: is PSD2 still fit for purpose?

On May 10^th, the European Commission launched a public consultation on whether the Second Payment Services Directive is still fit for purpose given the emergence of new payment services and risks.  

The goal is to report on the application and impact of the Second Payment Services Directive and, if appropriate, a legislative proposal to amend the Directive, which will be accompanied by an impact assessment.  

Context and evaluation

PSD2, adopted in 2015 aims to develop a competitive and innovative single market for payment services with a high level of security and protection for consumers and businesses by improving the previous rules. In particular, PSD2 aims to:

• make it easier and safer to use online payment services
• better protect payment services users against fraud, abuse, and payment problems
• promote innovative payment services
• strengthen the rights of payment services users.

The digital finance strategy and the retail payments strategy announced the launch of a comprehensive review of the application and impact of PSD2, which should include an overall assessment of whether it is still fit for purpose, taking into account market developments.   The evaluation will provide for an evidence-based assessment of PSD2 according to the principles described below.

1. Effective: the review will assess the extent to which PSD2 has successfully achieved its objectives, what main benefits the PSD2 has brought, and what challenges have arisen in applying the Directive.
2. Efficient: the review will focus on the costs and benefits resulting from implementing the Directive.
3. Relevant: the review will assess the relevance of PSD2, in particular in light of market developments (e.g. regarding new market players, services and technologies).
4. Coherent: the review will focus on how consistent the Directive is with other existing and upcoming EU legislation, e.g. the Second Electronic Money Directive (Directive 2009/110/EC) and the Commissions proposal for a regulation on harmonised rules on fair access to and use of data (Data Act).
5. EU added value: the review will assess the value of PSD2 and whether EU action was justified, e.g. in creating and promoting a level playing field across the EU.

The Commission will review the PSD2 in line with the Better Regulation guidelines. The review includes assessing the Directives application and impact (backward-looking dimension) and whether an amendment to the Directive is needed (forward-looking dimension). In the latter case, the Commission will prepare an impact assessment, building on the results of the evaluation.  

The Commission is collecting feedback and views

This call for evidence is open for feedback. Participants input will be taken into account as the European Commission further develops and fine-tunes this initiative. The feedback period will end on August 2 ^nd, 2022, midnight Brussels time. 

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Source: European Commission