EU institutions negotiate revised payments legislation

Dubbed by many as an 'evolution' rather than a 'revolution', reforms to the European Union payments legislative framework have reached trialogue negotiation stage, following the approval in June 2025 of the EU Council's position. Martin Dowdall and Clare Reynolds explore provisions that are likely to feature prominently in inter-institutional dialogue.

In June 2023, the EU Commission published its proposals for a revised Payment Services Directive (PSD3) [1] and a new Payment Services Regulation (PSR). [2] The package of measures aims to reduce payment fraud, foster technological innovation, improve consumer protection and increase transparency on fees. It responds to the Commission's review of the Second Payment Services Directive (PSD2), which concluded that the payment services market has undergone a major transformation in recent years. [3]