The European Parliament has formally adopted the revised Directive on Payment Services (PSD2), a set of new rules proposed by the European Commission to boost competition and innovation while improving consumer protections.
Updating EU rules on payment services will cut the cost of paying bills, by enabling new market players to use mobile and online tools to make payments on a client’s behalf, according to MEPs. These rules, informally agreed by MEPs and ministers in May 2015, also aim to make online payments safer, by laying down data protection and liability rules for all online payment service providers and open the market to competition through the creation of bank APIs.
"The EU payment services market remains fragmented and expensive, costing EUR 130 billion, or over 1% of EU GDP, a year. The EU economy cannot afford these costs, if it wants to be globally competitive”, said lead MEP Antonio Tajani (EPP, IT), adding that "The new regulatory framework will reduce costs, improve the security of payments and facilitate the emergence of new players and innovative new mobile and internet payment methods".
The draft law was approved by 578 votes to 29, with 52 abstentions. Following the Parliament's vote, the Directive will be formally adopted by the EU Council of Ministers in the near future. Member States will have two years to introduce the necessary changes in their national laws in order to comply with the new rules.