The revised Payment Services Directive (PSD2) has now been adopted by the European Parliament, clearing the way for its approval in the near future by the EU Council of Ministers and subsequent publication in the Official Journal.

Given this timeline, it is likely that those impacted by the changes will have until the later part of 2017 to implement the revised directive.

PSD2 proposes to bring about many changes to the operation of payment services in the EU. Some of the key issues include:

• The regulation of new business models known as “Third Party Payment Service Providers”

• Closing off the ‘commercial agent’ exclusion for e-commerce platform providers

• Restricting the use of the ‘telco’ / ‘digital device’ exclusion

• The continued lack of clarity on the use of the ‘limited network’ / ‘limited goods and services’ exclusion

• The rules around Third Party Payment Service Providers being granted access to customer accounts held with other PSPs.

• An increase in security obligations.