PSD2
Business & Finance abbreviation · Banking
| Stands for | Second Payment Services Directive |
|---|---|
| Categories | Business & Finance |
PSD2 stands for Second Payment Services Directive, a banking abbreviation.
EU directive, applied from 2018, that opened up banking by requiring banks to give licensed third parties access to customer account data and payment initiation, with customer consent, and that introduced strong customer authentication. It is the legal basis for open banking in the EU.
Example: Thanks to PSD2, the budgeting app can pull transactions from all three of her bank accounts.
Usage notes
PSD2 replaced the original Payment Services Directive of 2007. The UK implemented it before Brexit and runs its own open banking framework. In 2023 the European Commission proposed a successor package, PSD3 and a directly applicable Payment Services Regulation, with tougher fraud rules.
Related abbreviations
More banking abbreviations
- NSFR – Net stable funding ratio
- OD – Overdraft
- ODP – Overdraft protection
- PAN – Primary account number
- PEP – Politically exposed person
- PIN – Personal identification number
- RD – Recurring deposit
- RDC – Remote deposit capture
- RTGS – Real-time gross settlement
- RTN – Routing transit number
- RTP – Real-Time Payments
- RWA – Risk-weighted assets