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.

Partner Martin Dowdall (m.dowdall@taylorwessing.com) is a financial services regulatory specialist at Taylor Wessing with particular expertise in the use of new technologies in financial services including in relation to payments, cryptoassets and the use of artificial intelligence. Clare Reynolds (c.reynolds@taylorwessing.com) is a partner and regulatory lawyer, focusing on the regulation and use of technology across fintech and financial services, cloud computing, and ICT. Daniel Hirschfield (d.hirschfield@taylorwessing.com) is senior counsel (Knowledge).

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]