European Union: European Parliament and Council reached an agreement on Third Payment Services Directive (PSD3)

On 27 November 2025, the European Parliament and Council reached an agreement on the Third Payment Services Directive (PSD3). The Third Payment Services Directive seeks to ensure fair competition among payment service providers by addressing authorisation and supervisory powers and improving access to cash, particularly in remote areas. It establishes a simplified authorisation procedure for payment institutions requiring prudential and capital requirements, accurate own-funds calculations, reliable budget forecasts, harmonised timelines, and initial capital scaled to the provider’s risk level and to the payment services provided. It provides that crypto asset service providers already authorised under Regulation on Markets in Crypto-assets would be subject to a streamlined procedure while keeping appropriate risk controls and providing only services specified in the application.