PSD3 and PSR

 

 

 

What is PSD3 and PSR?

One of the key regulations shaping this landscape are the Payment Services Directive 3 (PSD3) and the Payment Services Regulation (PSR). PSD3 and PSR, expected to come into effect around 2026, aim to enhance consumer protection, foster innovation, and improve the security of payment services within the European Union. By mandating stronger authentication processes and promoting open banking, PSD3 and PSR not only ensure a safer financial environment but also encourage competition and innovation among financial institutions. As a result, organizations must stay agile and proactive in adapting to these regulatory changes to maintain compliance and sustain their competitive edge. 

PSD3 and PSR further explained

PSD3 (Payment Services Directive 3) and PSR (Payment Services Regulations) are key components of the evolving European regulatory framework governing payment services and electronic transactions.
What is the relationship between PSD3 and PSR?

  • PSD3 is the directive—a set of goals established by the EU that member states must incorporate into their national laws.
  • PSR are the regulations—country-specific laws created to implement the provisions of directives like PSD3.

The purpose of PSD3 (Payment Services Directive 3) and PSR (Payment Services Regulation) together is to modernize and harmonize the payment services landscape within the European Union. 

Why is PSD3 and PSR essential?

PSD3 and PSR are crucial because they aim to enhance consumer protection, foster innovation, and improve the security of payment services within the European Union. By mandating stronger authentication processes and promoting open banking, these regulations ensure a safer financial environment and encourage competition and innovation among financial institutions. This helps in creating a more secure and efficient payment ecosystem. 

Your value from best-practice PSD3 and PSR

Implementing PSD3 and PSR regulations provides several strategic and operational benefits for companies, particularly in the financial services, banking, and FinTech sectors.
Here’s the value breakdown:

Enhanced Consumer Trust and Loyalty
Compliance with security standards (e.g., Strong Customer Authentication) builds trust by reducing fraud and improving the safety of transactions.
Transparent processes for data sharing and payments foster confidence, encouraging customers to use services more frequently.

Compliance and regulatory alignment: Many standards require VRM controls, and an established programme can ensure adherence and simplify audits.

Stronger vendor partnerships: Well-managed VRM fosters positive relationships with suppliers, encouraging collaboration and innovation.

To download information on PSD3 and PSR in PDF click below

How to approach the implementation/compliance with PSD3 and PSR?

Vendor Selection: Establish criteria to evaluate vendors, including standards for cybersecurity, business continuity, and compliance.

Continuous Monitoring: Track vendor performance and adherence to agreements, ensuring ongoing alignment with organisational needs.

Due Diligence: Collect proof of vendor practices, such as certifications (e.g., ISO 27001), to verify their ability to meet standards.

Risk Response: Identify, document, and mitigate any emerging risks to minimise potential disruptions.

Vendor Risk Assessment: Evaluate each vendor’s impact on the organisation and assign a risk level to guide monitoring frequency.

How we can help

Our solutions

BR1GHT offers a range of solutions to support your VRM programme through technology, consulting, and managed services. We help to define and improve your first line controls, embed VRM into your second line risk & compliance processes, and enable your third line internal audit function to perform Vendor Risk Manaement audits.

Technology Consulting

BR1GHT provides advanced tools to support VRM processes, including continuous monitoring, risk assessment, and compliance management.

 

Specialist Consulting

Our team can help you design and implement VRM strategies, from vendor selection to continuous oversight, tailored to your organisation’s unique needs.

Managed Services

BR1GHT’s managed services provide comprehensive VRM support, handling vendor performance monitoring and risk response so you can focus on strategic priorities.

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