PSD2i

PSD2i refers to the Payment Services Directive 2 implemented in Italy. This directive, originally a European Union regulation, aims to enhance competition, innovation, and consumer protection in the payments market. PSD2i mandates that banks open up their data to authorized third-party providers (TPPs) through application programming interfaces (APIs). This allows TPPs to offer new payment initiation services and access account information with the customer's consent.

The primary goals of PSD2i are to foster a more integrated and competitive European payment landscape. It encourages the development of innovative payment solutions and digital services by enabling fintech companies to build upon existing banking infrastructure. Consumers benefit from increased choice, potentially lower costs, and improved user experiences through personalized financial management tools and faster payment methods.

Key aspects of PSD2i include Strong Customer Authentication (SCA), which requires multiple forms of verification for online payments to reduce fraud. It also establishes clear rules for the responsibilities and liabilities of payment service providers and TPPs. The directive has led to the rise of Open Banking in Italy, transforming how financial services are accessed and delivered.