Payment Services Directive

Introduction and objectives

The Payment Services Directive (PSD) is an initiative of the European Commission which will regulate payment services throughout the European Union (EU) and European Economic Area (EEA). The purpose of the PSD is to create a more efficient and competitive payments market for consumers, with respect to both domestic and cross-border payments.

PSD is designed to complement the SEPA (Single Euro Payments Area) initiative, by harmonising payment service rules and removing any legal barriers for implementation of these rules, throughout the EU and the EEA (Norway, Iceland, Liechtenstein). The key objectives of the PSD are to:

  • Improve competition by opening up payment markets to new entrants, aiming at greater efficiency and cost-reduction
  • Increase market transparency
  • Make cross-border payments as quick and effective as domestic payments
  • Standardise rights and obligations, with strong emphasis on consumer protection
  • Provide the necessary legal platform for the Single Euro Payments Area (SEPA)

The official date for implementation into local legislation is 1 November 2009. In each local country, the PSD changes are aligned time-wise with the country’s law drafting process and legal implementation period. Changes due to PSD may therefore be introduced at different times, as the law drafting process and implementation period vary between countries.

Nordea and the PSD

Nordea plans to fulfil the PSD requirements from 1 November, when the PSD comes into effect for most EU/EEA countries. In addition, despite delays in the Swedish law drafting process beyond 1 November, Nordea will start implementing the PSD requirements for incoming cross-border payments in Sweden, already during this month.

In order to make the required adjustments to comply with the PSD, Nordea has since 2008 established and run a company-wide PSD project. The objective of this project is to assess, plan and make the changes required to our business processes, systems, and customers’ agreements in order to comply with PSD. In terms of geography, the countries in scope for Nordea’s PSD implementation are: Denmark, Finland, Norway, Sweden, Latvia, Lithuania, Estonia, Poland, Luxembourg, Germany and the UK.

See the country-pages for further country-specific information on the PSD in Nordea.

European Commission Information on PSD

For further reading on the PSD, see the European Commission’s websiteOpens new window.