What is PSD2?

Definition of PSD2

The second Payment Services Directive (commonly referred to as PSD2) is a 2015 revision of the European Union’s original Payment Services Directive. This legislation took effect in January 2018.

PSD2 legislation is intended to make banking data more transparent to consumers and expands on the following areas of the Payment Services Directive:

  • improving security using Strong Customer Authentication
  • advancing consumer rights
  • enabling third-party account and payment services such as AISPs and PISPs to access customer account information

Business tips and news

If you check this box we'll include information and updates about Making Tax Digital along with your general business tips and news.

We’ll never share your details with third parties for their marketing purposes. For details on how we use customer information, see our General Privacy Notice. You can opt out of marketing emails any time by clicking on the unsubscribe link in the footer of any email.

Related Definitions

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.