PSD3 and PSR: Unlocking Strategic Value Beyond Compliance

Thought Leadership

13 May

The European Union's proposed Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR) represent a significant evolution in the payments landscape for Financial Services. These changes aim to enhance security, foster innovation, and level the playing field between traditional banks and non-bank payment service providers (PSPs), ultimately delivering greater protection, choice and convenience for the customer.

As the Financial Services industry prepares for this shift, organisations face both challenges and opportunities. For Bank PSPs, PSD3 and PSR present a potential threat in the form of increased competition and heightened compliance demands, but also a chance to strengthen customer trust and drive innovation through secure, value-add innovation. For non-bank PSPs, the new rules reduce structural barriers and open up infrastructure access, creating a unique window to scale and compete more directly – though they too must now navigate increased regulatory scrutiny and compliance obligations.

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Authors

Author Profiles Database

Andrew Ng

Partner

Caolan Haughey

Consultant

Shauna O’Carroll

Consultant

PSD3 and PSR: Unlocking Strategic Value Beyond Compliance

Those who merely aim for compliance risk falling behind, while forward-thinking organisations that embrace these changes can unlock significant strategic value and gain a competitive edge through differentiating in a highly dynamic market.

The introduction of PSD3 and PSR marks a pivotal moment in the evolution of the European payments landscape. These regulatory changes present both significant challenges and unprecedented opportunities for banks and non-bank PSPs alike. The organisations that will thrive in this new environment are those that view PSD3 and PSR not merely as compliance hurdles, but as catalysts for strategic transformation.

By embracing these changes, financial institutions can:

Enhance their security posture and build greater trust with customers
Unlock new revenue streams through innovative services and partnerships
Position themselves at the forefront of the open banking revolution

Together, PSD3 and PSR form a comprehensive package to modernise payment services while ensuring consistency, security, and fairness across the EU.

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