The second Payment Services Directive (PSD2) is a game-changer for the European banking industry. Although much of the focus to date has been on the retail, the directive will also have a disruptive impact on transaction banking.
The profound change it will bring about might not seem apparent at first glance, particularly compared with its forerunner. The PSD1, established in 2007, created the single market for payments and harmonised payments processing in the European Economic Area, including execution time and fees. This basic framework remains unchanged under PSD2.
