Is the Payment Services Directive fit for purpose? That is the question the European Commission is asking in a new consultation paper on PSD2. Responses to the consultation will help the Commission review the effectiveness of PSD2. That review is expected to end with the Commission proposing changes to the legislation. This means that responses will inform the future landscape of payments regulation in Europe.


The consultation is "targeted", meaning that its questions require more in-depth knowledge of, and/or (working) experience in, the field of payment services. The Commission asks about a range of topics, from broad questions - such as 'has PSD2 been effective in reaching its main objectives?' and 'has the current PSD2 framework achieved its objectives in terms of meeting payment user needs?' - to more specific questions, including whether the scope of PSD2 is still adequate, whether current exclusions to PSD2 need to be changed or deleted, and whether the list of regulated payment services should be revised. For example, the Commission is interested in opinions on whether 'payment transactions using cryptoassets', 'operating payment systems' and 'digital wallet services' should be included as regulated payment services.


As the payments ecosystem welcomes growing numbers and types of participants, the regulatory framework in which they operate will need to adapt. This consultation is an opportunity for those with experience in the payments space to give their opinions on a wide range of topics from licensing to safeguarding to open banking. Responses can by submitted up until 5 July 2022.