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Introduction Directive 2015/2366 on payment services in the internal market (hereinafter PSD II) was published in the Official Journal today, 23 December 2015, repealing Directive 2007/64/EC on payment services in the internal market (hereinafter PSD I). The principal aim of PSD I, adopted in 2007, was to regulate the payments industry and to enhance consumer protection.

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However, PSD I is not an accurate reflection of how some payment methods operate, and its application is not always clear. The European Commission was concerned that many payment service providers (hereinafter PSPs) have escaped regulation under the current PSD I and, also due to the rapid technological changes in this sector, proposed a second iteration of this legislation. PSD II is part of the legislative package in the field of the EU payments framework, adopted by the European Commission on 24 July 2013, which also includes the new Regulation 2015/751 on interchange fees for card­based payment transactions (hereinafter the MIF Regulation). PSD II covers both public law aspects, relating to the prudential supervision of PSPs, and private law aspects, relating to the rights and obligations related to the offering and use of payment services. This new Directive will enter into force twenty days after its publication, i.e., on 13 January 2016 and should be transposed into national law by all Member States two years after the date of entry into force, i.e., 13 January 2018. This client alert provides a summarizing overview of the main changes under PSD II. Scope of application 2.1 E x tension of the scope a.

General PSD I applies to all types of payment services carried out in EU currencies provided within the EU, to the extent that both the payer's PSP and the payee's PSP are, or the sole PSP in the payment transaction is, located in the EU ( 'both legs in the EU').