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 regulated 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, by 3D Secure 2.
Switzerland is not directly bound by PSD2, as it is not an EU member. Nevertheless, PSD2 has an indirect impact on Swiss companies: European banks and card networks also enforce SCA for transactions with Swiss merchants. Swiss PSPs must support 3D Secure 2 in order 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 read account data of European bank customers (with their consent) for a budgeting app.
A Swiss PSP implements 3D Secure 2 in order to process card payments from EU customers in a PSD2-compliant manner.
PSD2 FAQ
What is PSD2?
PSD2 (Payment Services Directive 2) is the European Payment Services Directive. It has been regulating 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 merchants 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 the fight against fraud, access to cash and the rights of payment service users. Implementation is expected for 2026–2027.
