The new framework for payment services in the European Union: Key changes ahead
On 28 June 2023, the European Commission submitted its proposals for a new Payment Services Directive III (“PSD3”) and a Payment Services Regulation (“PSR”). Both texts have been subject to the EU legislative procedure and the result of the negotiations between the European Parliament and the Council was released on 23 April 2026.
Following EU’s internal procedures and approvals, the two texts are expected to be officially adopted and enter into force by autumn 2026, and will become applicable, in principle, 21 months after their publication to the Official Journal of the EU. The agreed texts, which are not yet final, are available here and here.
Key changes ahead
The new package will fundamentally change the EU payment services market, driving it towards greater harmonization and facilitating cross-border activities. Directive 2015/2366 (“PSD2”) required transposition into national legislation, generating divergence in the rules applicable across EU jurisdictions. The new framework is designed as a single rulebook and is governed by two instruments, PSD3 and PSR.
PSD3 will govern the authorization, supervision, governance, capital requirements, safeguarding requirements, and accounting and auditing of payment institutions. PSR will lay down uniform requirements for the business of payment services, including transparency conditions and information requirements for payment services, requirements for payment transactions governed by framework contracts, requirements for the issuance and redeemability of electronic money, requirements for the authorization and execution of payment transactions, requirements for customer authentication, and liability.
Furthermore, PSD3 is expected to repeal the existing Directive 2009/110/EC on electronic money institutions. This is because PSD3 will effectively merge the regulatory regime governing electronic money institutions with that applicable to payment institutions, thereby allowing payment institutions to be authorized to provide electronic money issuance services, subject to specific rules applicable in this regard. Moreover, under the new framework, account information service providers will be able to benefit from the cross-border provision of services (EU passporting rights) within the EU.
The new framework also addresses the issue of the “overlap” between the existing regulatory framework and Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR), by providing that issuers of e-money tokens will not be required to obtain separate authorization under PSD3, provided that they have already been authorized as crypto-asset service providers, unless they also provide payment services. Finally, it should be noted that the PSR introduces substantially new provisions concerning the liability of payment service providers in relation to unauthorized transactions and instances of fraud.
Conclusion: The importance and challenge for the Greek payment services market
The repeal of PSD2, which has been transposed into Greek law by means of Law 4537/2018 (A’ 84), and the introduction of a directly applicable Regulation imposing obligations on payment services providers will undoubtedly change the Greek payment services landscape. Law 4537/2018 is expected to be modified to align with PSD3, while Greek payment services providers will need to thoroughly examine and practically understand the obligations uniformly imposed at EU level.
Despite the applicability of the two legislative texts in principle 21 months after their publication in EU’s Official Journal, it is certain that businesses operating in the payment services and electronic money sectors should prioritize an early and timely assessment of those regulatory developments.
Covered businesses operating in the Greek market should identify and address the implications for their authorization status and proactively review their internal policies, procedures and any contractual commitments, in order to ensure compliance with the new regulatory requirements.
For more information and advice please contact Gregory Pelecanos, John Zachos, Apostolia Daskalos or Dionysis Fotopoulos.
