On Wednesday, the Commission presented proposals for the digitization and modernization of payments and the financial sector.

According to a statement issued by the Commission, these new proposed rules aim to enhance consumer protection and promote competition in electronic payments. They offer consumers the opportunity to securely share their data, ensuring greater security when using financial products and services.

The need for these proposals arises from the significant growth of electronic payments in recent years. From 2017 to 2021, the total value of electronic payments rose from 184.2 trillion euros to 240 trillion euros. This trend has been particularly accelerated during the COVID-19 pandemic. As a result, new service providers have emerged, especially in areas such as secure financial data exchange between banks and fintech companies. However, this rapid expansion has also led to the emergence of new types of fraudulent activities.

The proposed measures consist of two key components. Firstly, there is a revision of the Payment Services Directive (PSD2), which will evolve into PSD3. This revision aims to combat and mitigate payment fraud, expand consumer refund rights for fraud victims, and strengthen consumer rights overall. Additionally, it aims to level the playing field between banks and non-banking institutions, improve cash availability in retail stores, and enhance harmonization and enforcement of legislation.

Secondly, the proposal includes a legislative framework for accessing financial data. This framework establishes rights and obligations regarding the management of customer data. Customers will have the option, though not the obligation, to securely share their data. Financial institutions, on the other hand, will be required to possess the necessary technical infrastructure to make customer data accessible. It is important to note that this accessibility is always subject to the customer's consent and the protection of personal data.

These proposals represent a comprehensive effort to adapt to the evolving landscape of digital transactions and financial services. By promoting consumer protection, fostering competition, and ensuring the secure exchange of data, these measures aim to create a more robust and trustworthy financial environment.