PSD3 will help deliver an even more secure, competitive, and consumer-friendly payments ecosystem. Proposed changes will raise the dial on current PSD2 requirements to help combat and mitigate payment fraud, expand consumer rights and protection, improve access to Open Banking, enhance cash availability, and strengthen harmonisation. This will have significant ramifications for banks, merchants, and PSPs alike. As they prepare for the new directive, stakeholders will have to be ready to adapt their technology and compliance processes to:
address gaps in their existing framework and better protect consumers by expanding regulatory scope to include emerging areas like crypto assets, digital wallets, and BNPL;
accommodate increased liability of third-party services, such as PSPs, which are expected to be held more accountable;
refine transparency and information requirements, particularly regarding currency conversion costs and execution time;
reassess the role of Open Banking and APIs, focusing on security, cross-border efficiency, authentication and innovation.
Although PSD3 is an evolution and not a revolution, embracing changes could require upgrades to infrastructure, while stricter regulations may lead to increased compliance costs. At ACI, our compliance and mandate experts are closely monitoring proposed changes and are poised to help clients navigate their options while striving to meet new compliance rules.
It’s important to note that the European Parliament and Council are still finalising, reviewing, and transposing the new PSD3 requirements. While adoption is expected around late 2024 or early 2025, compliance deadlines are likely to be in 2026. This gives banks, PSPs and merchants a working window to assess developments and identify what they must do and by when. In preparation, ACI is diligently working on solution strategies to support its clients as they optimise their payments platforms in line with new requirements. Our aim, as always, is to help them better empower their businesses and safeguard their customers, while avoiding disruption and keeping compliance costs to a minimum.
Both payment and e-money services are similar in nature and risks, so it makes sense that they share legal requirements for authorisation and safeguarding. Operational processes and risk management are key areas of concern, and ACI is actively working to ensure seamless adaptation to the new regulatory environment. A prime focus will be helping clients adapt to changes related to Strong Customer Authentication (SCA) and Anti-Money Laundering (AML) regulations.
We have always recognised the importance of Open Banking in creating faster, more efficient processes that reduce costs, deliver better user experiences and more personalised services. PSD3 will make it even easier for all parties to take advantage of these benefits. At ACI, we’re strategically positioned to help clients exploit Open Banking to the full, with permission controls and consent mechanisms that empower customers to choose what data to share while respecting their privacy.
We also offer seamless data interconnectivity through well-managed APIs that improve interoperability. By prioritising data security and compliance, we are investing in innovative solutions that don’t just maintain regulatory standards but also help drive adoption and loyalty among consumers.
ACI has been championing fraud prevention for over four decades and is continually advancing technology and practices to keep clients ahead. We are well placed to accommodate PSD3’s strengthened requirements. We have already made significant investments in multi-layered AI-powered payments intelligence and fraud management technologies, including adaptive models and cloud-based solutions.
To reduce effort and optimise efficiency for clients and their fraud teams, we have developed automated tools including model generators for predictive machine learning models and real-time transaction monitoring for comprehensive fraud detection. Additionally, merchants and banks can use our behavioural biometrics and advanced AI capabilities to identify evolving fraud patterns as they happen, and to protect end-users from increasingly sophisticated, synthetic fraud attacks.
Under PSD3 we’ll see network intelligence technologies being deployed to securely share fraud signals across the industry. We welcome this move and support it with committed to collaborative data sharing, accurate real-time insight and contextual analysis to stay ahead of emerging fraud threats and support clients and consumers effectively.
With almost two decades of experience in the payments industry, Darren has a passion for working with organisations to understand their challenges and enable them to grow. The payments industry is fast moving and, therefore, it’s key that we enable banks/intermediaries and merchants in Europe to grow and expand globally. It’s important that we understand the consumers and how to increase adoption with this ever-changing industry.
ACI Worldwide is a global leader in real-time payments software. Our proven, secure, and scalable solutions enable corporations around the world to process and manage payments and mitigate fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.
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