PSD2uutta

PSD2uutta is a proposed revision to the European Union's Payment Services Directive 2 (PSD2) intended to address evolving digital payments and fintech innovation. The term blends PSD2 with the Finnish word uusi, meaning new or update. The concept is used in policy discussions to describe possible future updates to PSD2 rather than a currently enacted law.

Background: PSD2, enacted in 2015 and implemented across the EU by 2018–2020, expanded access to payment accounts for third-party providers and introduced strong customer authentication and real-time processing. PSD2uutta would aim to strengthen security, data protection, and competition as new technologies such as real-time settlement, embedded finance, and AI-driven fraud detection mature.

Potential provisions (illustrative): harmonized and mandatory API standards for payment account access; enhanced customer authentication with risk-based methods and biometric options; clearer liability regimes and incident reporting for unauthorized payments; strengthened rules on data access, consent, and portability for third-party providers; governance of open banking standards to prevent fragmentation and ensure cross-border interoperability.

Implementation and reception: PSD2uutta is not current law; any formal adoption would require EU legislative procedures and agreement among member states. If enacted, it could lower integration costs for banks and fintechs by providing common standards while increasing security and consumer protections. Critics warn that higher compliance costs and potential regulatory fragmentation could offset benefits unless implemented consistently.

See also: PSD2; Open banking; European Union payment regulation.