PSD3

The European Commission has announced further legislative changes to the payments regulatory framework which will apply in Europe. These represent a further update to the PSD2 regulation (which introduced strong customer authentication) as PSD3 (Payment Services Directive 3) and PSR (Payment Services Regulations).

As is normal for European legislation, the EU Commission set out high level principles which are discussed and agreed with the EU Parliament. Detailed guidelines are then developed (typically via the EBA) which are finally approved, and the payments industry is then required to adopt the new framework within a set time period.

The MRC has been working with a small subgroup of major merchants to understand the implications for the new regulation.

The MRC view is that regulation should continue to improve security, transparency and competition within payments, and the European Commission proposals are broadly welcomed.

However, payments is a complex business with many stakeholders and there are occasions where legislation can create consequences for merchants which may be opposite to the regulations intent or where the European Commission may not have entirely anticipated the consequences from their proposals.

To view the MRC position paper, click here. The paper will be used as a living document to capture MRC members' perspectives and guide our ongoing engagement with legislators and regulators as they finalize the details of this important piece of payments legislation.