PSD3 is the proposed third Payment Services Directive, the European Union’s planned successor to PSD2. Proposed by the European Commission in June 2023, it travels alongside a directly applicable Payment Services Regulation (PSR). Together they update the rules for Strong Customer Authentication, fraud liability and open banking. As of 2026 the package is agreed but not yet in force.
Why it matters
PSD3 signals the direction of European payments for the rest of the decade: tighter authentication, more fraud responsibility on banks and payment firms, and sturdier open banking access rather than a rollback of any of it. For merchants there is nothing to comply with today, because PSD2 still governs live checkout, but the smart move is to get SCA and recurring billing right now so you are ready for what phases in. Our plain English guide to PSD2, SCA and PSD3 walks through what applies today and what changes next.