The Impact of PSD2 on Buyers and Sellers

As PSD2 goes into effect, both service providers and consumers wonder what that means for them. PSD2 is an EU directive meant to regulate payment services and payment service providers throughout the European Union. Big credit card companies are upset because the regulations allow for direct access from merchant to consumer, bypassing them completely. But what does this mean for you, as a consumer and a merchant? Let's look at 4 main topics that PSD2 addresses.

Extension of Scope

The first major change is that PSD2 expands the reach of the original PSD regulation. Before, both parties had to be located within EU borders for the regulation to be applicable. But with the new regulation, only one party needs to be an EU member. PSD2 also broadens the definition of a "payment institution" to include more types and categories.

Third-party Access

The purpose of PSD2 is to level the playing field by opening access to external parties. Currently, we use a debit card or credit transfer to exchange money. Both of these services are provided by the bank, which means that the bank acts as the middleman in each transaction. It also means that they can charge whatever they want to act as the go-between. PDS2 allows a third-party to directly access the account, thereby bypassing the bank and its fees.

Prohibits Surcharges

Another area that PSD2 addresses is surcharges. In the past, each individual country imposed their own rules. The new regulation outlines a standardized approach and directs that no surcharge will be allowed for consumer cards affected by the Interchange Fee cap.


Of course, there are risks involved with opening third-party access to accounts. PSD2 addresses those by introducing new security requirements, as well as new security challenges, to ensure the consumer is protected.

PSD2 is the regulation that allows consumers to transfer money directly to the merchant without a middleman. mBeaconPay can speed up the implementation of a new payment acceptance infrastructure that can take advantage of PSD2. Contact us today to find out how mBeaconPay can work for you.