Author: Elina Grigorjeva

Introduction Europe’s payments ecosystem is entering a new phase. The upcoming Payment Services Directive 3 (PSD3) promises to reshape how payments, open banking, and fintech interact across the continent. Although the UK is no longer part of the EU, UK-based fintechs and payments firms should pay close attention – the regulatory ripples will cross the Channel and may influence the UK market too. In this article we’ll cover what PSD3 is, when it will be implemented, what it means for payments and fintech actors, what businesses should do now, and why even UK firms need to get ready. What is PSD3? The Payment Services Directive 3 is the next iteration of the EU’s payments‐services regulatory framework, following Payment Services Directive 2 (PSD2).Here are the key facts: When Will PSD3 Be Implemented? While the precise dates are still subject to final legislative approval and national transposition, the current timeline points to: For UK businesses and fintechs, that means now is the time to start assessing impact – even if direct UK legal obligation is uncertain. What PSD3 Means for Payments & Fintech 1. Enhanced Security & Fraud Prevention PSD3 tightens up on strong customer authentication (SCA), expands obligations around fraud, and requires better verification of payee details (like IBAN/beneficiary name matching). For fintech firms, that means investment in stronger authentication, KYC, transaction monitoring, and data-sharing capabilities. 2. Broader Access & Level Playing Field Under PSD3 non-bank firms (fintechs, Payment Service Providers (PSPs), Electronic Money Institutions (EMIs) will face clearer pathways to access payment systems and a more uniform regulatory environment across EU states.For UK fintechs with EU ambitions (or servicing EU clients), this is a notable shift. 3. Data Sharing & Open Banking/Finance PSD3 emphasises open banking and may tie into broader “Open Finance” frameworks. Firms will need to handle data […]