The roadmap to PSD3 – Luxembourg for Finance
The European Commission announced a review of PSD2 which ran from May 2022 to August of the same year. The review was to determine whether the Directive was still fit for purpose given the significant changes seen in the payments sector. The consultation on the effects of PSD2 showed that, while the Directive had in some part removed barriers to innovation and new players by paving the way for open banking, they had remained too high to ensure that it would take off completely. For many banking institutions the costs relating to the reforms were highlighted and largely outweighed the benefits. For example, developing new APIs is estimated to require more than €2 billion, and this is in addition to the €5 billion needed to roll out SCA according to a recent study on the impact of PSD2. […]
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