PSD3: a major turning point for the payment industry

The third Payment Services Directive (PSD3), scheduled for 2026, promises to be a significant evolution in the European payments regulatory landscape. This new directive considerably strengthens security and authentication requirements, with far-reaching implications for the entire payment ecosystem.

Enhanced safety and transparency

PSD3 imposes greater obligations on payment service providers (PSPs) in terms of security and transparency. The sharing of information with issuers will have to be intensified, requiring the adaptation of current systems and processes. A crucial point concerns the use of personal data: PSPs will be able to exploit certain information (device, time-stamp, IP) without explicit consent, but only in the context of the fight against fraud.

Greater responsibility for suppliers

A major innovation of PSD3 is the increased accountability of payment service providers. In the event of fraud occurring after a strong authentication exemption (SCA) on their initiative, they could be held liable. This provision creates a direct financial incentive to maintain a high level of security, while seeking to preserve the fluidity of the customer experience.

Strong authentication at the heart of the system

PSD3 confirms and reinforces the central role of strong authentication, inherited from PSD2. However, it also underlines the need to seamlessly integrate payment into the overall shopping experience. The figures speak for themselves: according to an Adyen/Ipsos study, nearly 20% of shopping cart abandonments are due to a failure in strong authentication. This highlights the crucial importance of optimizing this stage of the customer journey.

The Verification of Payee (VOP) challenge

The announced generalization of the Verification of Payee (VOP) principle represents a new technical and operational challenge. Issuers will have to systematically verify that bank details (IBAN) match the name of the beneficiary for all types of credit transfer. This requirement comes at a time when credit transfers are set to play a growing role in Europe's payment strategy, notably with the launch of WERO and the widespread use of instant payment.

PSD3 marks a decisive turning point for the European payment industry. It imposes a delicate balance between strengthening security and preserving the fluidity of the customer experience. Industry players will have to invest heavily in technological innovation and process optimization to meet these new requirements, while maintaining a high-quality user experience. The ability to control the customer journey while effectively combating fraud in real time will be crucial to the success of payment service providers in this new regulatory environment.