PSD2 (Payment Services Directive 2)
PSD2 is the European Payment Services Directive that regulates Open Banking, Strong Customer Authentication (SCA), and competition in payment transactions.
PSD2 (Payment Services Directive 2)
PSD2 (Payment Services Directive 2) is an EU directive that has regulatory authority over payment transactions in Europe since 2018. It has three central objectives: more competition through Open Banking, higher security through Strong Customer Authentication (SCA) and better consumer protection.
PSD2 obliges banks in the EU to open their account data APIs to licensed External providers (Open Banking). In addition, electronic payments must be secured with at least two authentication factors (SCA) — implemented among other things through 3D Secure 2.
Switzerland is not directly bound by PSD2 as it is not an EU member. Nevertheless, PSD2 has an indirect effect on Swiss companies: European banks and card networks also enforce SCA for transactions with Swiss Comerciantes. Swiss PSPs must support 3D Secure 2 to be able to process card payments from EU cardholders. The successor PSD3 is in preparation and is intended to further tighten the framework.
PSD2 Examples
A German customer pays in a Swiss online shop with a credit card. According to PSD2, their bank requires 3D Secure authentication.
A FinTech uses PSD2 APIs to access account data of European bank customers (with their consent) for a budgeting app.
A Swiss PSP implements 3D Secure 2 to process card payments from EU customers in compliance with PSD2.
PSD2 FAQ
What is PSD2?
PSD2 (Payment Services Directive 2) is the European Payment Services Directive. It has regulated open banking, Strong Customer Authentication (SCA), and competition in payment transactions since 2018.
Does PSD2 apply in Switzerland?
Not directly — Switzerland is not an EU member. However, PSD2 indirectly affects Swiss Comerciantess because EU banks also enforce SCA for payments to Swiss shops.
What is Strong Customer Authentication (SCA)?
SCA requires at least two authentication factors for electronic payments: knowledge (PIN), possession (smartphone) or inherence (fingerprint). SCA is implemented, among other things, by 3D Secure 2.
What is PSD3?
PSD3 is the planned successor to PSD2. It aims to further tighten the regulatory framework and, among other things, strengthen fraud prevention, access to cash, and payment user rights. Implementation is expected for 2026–2027.
