PSD3 and PSR: What FinTechs, Payment Institutions, EMIs and OEMs need to know

The next phase of EU payments regulation is here. The Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR) will transform the EU payments landscape and FinTechs need to begin preparing for implementation now.

Our latest publication discusses the key reforms and their practical implications for payment institutions, e-money institutions, payment initiation service providers, account information service providers and mobile technology companies.

At its core, PSD3 will introduce a fundamental shift in how firms are authorised, including a move to a single payment institution regime, revised capital requirements and enhanced safeguarding requirements. At the same time, PSR will enhance the open banking framework and strengthen customer data access rights by placing greater control in the hands of customers. It will also significantly strengthen fraud prevention through enhanced transaction monitoring, expanded liability reforms and industry-wide information sharing arrangements.

Beyond financial institutions, the reforms extend to the wider digital ecosystem, with significant implications for mobile device manufacturers and technology providers through new interoperability requirements, reflecting the increasingly interconnected nature of payments.

With ambitious implementation deadlines, early preparation will be critical. This publication highlights the key actions firms should take, from gap analysis to system upgrades and customer journey redesign, to ensure readiness and maintain competitive advantage in a rapidly evolving regulatory environment. Whether you are assessing the impact on your business model or planning your implementation roadmap, our insights will help you move from awareness to action and stay ahead in a rapidly evolving payments landscape.

For information on how ALG can assist your business with PSD3/PSR implementation, please contact Eimear O’Brien, Partner, Louise Hogan, Partner, Eoin O’Connor, Partner, Patrick Brandt, Partner, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.

Date published: 19 June 2026