What is the purpose of the new council directive for payment service providers

The purpose of the new Council Directive for Payment Service Providers (PSPs) is to create a more integrated European payments market, make payments more secure and protect consumers. The directive aims to:

Increase pan-European competition and participation in the payments industry: By harmonizing consumer protection and the rights of PSPs, the directive promotes a level playing field and encourages competition among PSPs

Promote the development and use of innovative online and mobile payments: The directive supports the growth of innovative payment solutions, such as internet and mobile payments, to enhance the overall payment landscape

Enhance transparency and compliance in cross-border payments: The new reporting obligation for PSPs requires them to collect and report data on cross-border payments to local tax authorities, which helps detect and combat VAT fraud

Strengthen consumer protection: The directive aims to better protect consumers when they pay online and against fraud, abuse and payment problems

Promote innovative mobile and internet payment services: The directive encourages the development of new payment technologies and services, providing consumers with more choices and convenience

Overall, the new Council Directive for PSPs is part of the EU’s efforts to foster a more competitive and innovative retail payment landscape, ensuring a safer and more secure environment for consumers and businesses