PSD 3/PSR: Final compromise texts published

On 23 April 2026, the Council of the EU published final compromise texts of the legislative proposals for a Third Payment Services Directive (PSD 3) and Payment Services Regulation (PSR) (see the final compromise texts here and here). The release of the texts now provide welcome certainty after months of anticipation since it was announced in November 2025, that the Council and the European Parliament had reached provisional agreement on the PSD 3 and PSR proposals, but the final compromise texts were not published at that time.  

Along with the final compromise texts, the Council also published an '‘I’ Item Note' in which the General Secretariat of the Council recommended that the Council’s Committee of Permanent Representatives approves the final compromise texts with a view to reaching an agreement at second reading with the European Parliament.

In terms of next steps, once the texts are finalised, they will need to be formally adopted by the Council and the Parliament before they can be signed into law and published in the Official Journal of the EU.

For payment institutions, e-money institutions and in-scope credit institutions, the final texts provide much needed clarity on the future EU payments framework under a more harmonised regulatory model. With the final text now available, institutions can move from high‑level assessments to gap analysis and implementation planning.

ALG’s market leading Financial Regulatory Advisory Team are already working on PSD 3/PSR implementation and compliance projects. For information on how ALG can help your institution implement the reforms into the business, please contact Eoin O’Connor, Partner, Patrick Brandt, Partner, Eimear O’Brien, Partner, Louise Hogan, Partner, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.

Date published: 24 April 2026