PSD2, or Payment Service Providers Directive 2, is the European regulatory directive for Payment Institutions and Electronic Money Institutions operating in the EU. In 2013, PSD2 is introduced as an amendment on PSD which was constituted in 2007. The most notable enhancements in PSD2 are third-party access to customer accounts and regulations on customer authentication and APIs.
While paving the way for integrated operations in financial services, the revised Payment Service Providers Directive (PSD2) compliance has become the primary obligation for PIs and EMIs to acquire licenses and operate.