The second Payment Services Directive (PSD2) arises from the European Union's need to create a single market for payment services - open banking. With this directive, banking institutions, through API (Application Programming Interface), have the responsibility to ensure that their systems are able to communicate with the systems of other organizations.
For consumers, PSD2 provides the following advantages:
- Increased security - Strong client authentication requirements
- More information - Enables the aggregation of all banking information in a single ecosystem
- Open banking system - The customer can choose where he manages his bank accounts
- Greater offer - A more open ecosystem allows more entities to enter, which increases competition
- Greater control - The customer decides and manages who can access his bank details