Update: On 27 November 2025, the Council of the EU and the European Parliament reached a provisional agreement on PSD3 and the PSR. The negotiations on FIDA, by contrast, have stalled, and it is currently uncertain whether the regulation will be adopted.
On 28 June 2023, the European Commission published its proposals for the next generation of EU payment rules: the third Payment Services Directive (PSD3), the Payment Services Regulation (PSR) and the Financial Data Access Regulation (FIDA). Together, they are intended to update the EU framework for payments and financial data and adapt it to changing market and consumer needs. The proposals bring a wide range of changes and lay the foundation for the future of payments in Europe.
What’s New in PSD3 and the PSR?
PSD3 updates the requirements for payment service providers, in particular the rules on licensing and supervision. It also brings the rules for e-money and payment services together in one framework.
The PSR, which will apply directly in all EU member states, sets out the rules for providing payment services. It removes obstacles to open banking services and gives consumers more control over who can access their data. These measures are intended to improve the customer experience and strengthen trust in payments.
Would you like to learn more about the origins of open banking? Then read here.
Would you like to find out what PSD and PSD2 mean? Then read here.
FIDA: The Key to Open Finance
A central part of the package is FIDA, the Financial Data Access Regulation. By setting clear standards for accessing and using financial data, FIDA is intended to lay the foundation for the next stage of open banking: open finance. It would extend data sharing beyond payment accounts, for example to savings, investments and insurance. Customers would decide which data they share, and for which services.
Goals and Impact of the New Rules
The new rules have clear goals: stronger protection against payment fraud, better access to EU payment systems for non-bank payment service providers and a better-functioning open banking market. Improved consumer information and rights are intended to strengthen trust in payments. Bringing the rules for e-money and payment services together makes payment systems across Europe more compatible and supports market growth.
What PSD3 and the PSR Mean for Account Information Service Providers
The proposals bring a number of changes and benefits for account information service providers (AISPs), as well as for payment service providers more broadly.
1. More Opportunities in Open Banking
- Revised definition of “payment account”: A clearer definition determines which accounts AISPs can access, making it easier to obtain relevant account information.
- Dedicated interfaces (APIs): Banks and other account-holding payment service providers must provide dedicated interfaces for data exchange with AISPs. This makes communication more efficient and access to account information easier.
- Permission dashboard: Banks must provide account holders with a dashboard where they can see and manage the access rights they have granted to AISPs. This gives customers more control and transparency over who can access their data.
2. Simpler Strong Customer Authentication
Under the proposals, strong customer authentication only has to be applied when an AISP accesses payment account data for the first time. Renewed authentication is only required after 180 days. This lowers the barriers to using AISP services.
3. Better Protection Against Fraud
- IBAN-name check (verification of payee): Payment service providers must check that the IBAN and the payee’s name match before a transfer is executed. This makes payments more secure.
- Liability for impersonation fraud: If fraudsters trick a customer into making a payment by impersonating an employee of their bank, the payment service provider can be held liable, subject to certain conditions.
- Better transaction monitoring: Payment service providers must strengthen their transaction monitoring and may share fraud-related information with each other, in order to detect and prevent fraudulent transactions.
4. Better Access to Payment Systems for Non-Bank Providers
Payment institutions get stronger rights to access payment systems and bank account services, making them less dependent on banks. Operators of payment systems may only refuse access where this is necessary to protect the system against specific risks.
FINcredible was the first account information service provider in Austria to be licensed by the Financial Market Authority (FMA) under PSD2. As an AISP, FINcredible is directly affected by these changes and is preparing to make the most of them for its customers.
Challenges and Opportunities for Banks and Payment Service Providers
The new rules will bring challenges, particularly for banks, which must remove barriers to key payment infrastructure and provide new interfaces and dashboards. At the same time, they open up opportunities for collaboration: banks, payment institutions and account information service providers can develop new services together, create new revenue models and strengthen customer loyalty.
Conclusion
The proposals for PSD3, the PSR and FIDA are an important step towards a better payment environment in the EU. They lay the groundwork for a better customer experience and more tailored financial services. Although there are challenges, they also create new opportunities for banks and payment service providers. The coming years will show how these changes shape payments in Europe.
If you have any questions or would like to schedule a personal appointment with us, please don’t hesitate to contact us via our contact form.
To stay up to date, follow us on LinkedIn and YouTube or subscribe to our newsletter!
