Council PSD3 position folds e-money institutions into payment regime

The Council's first-reading position on PSD3) and statement of reasons) were published in the Official Journal on 6 November 2026. The position repeals the Electronic Money Directive, Directive 2009/110/EC, and PSD2, Directive (EU) 2015/2366. It sets rules for access to payment services and for the supervision of payment institutions (PIs), while the Council's reasons say the package fully integrates electronic money institutions (EMIs) into the updated PI authorisation and supervisory regime.

This is the Council's position at first reading, reflecting the provisional agreement reached with the European Parliament and supported by the Commission. It is not yet the directive in force. The next step is Parliament's second reading. The chair of Parliament's Economic and Monetary Affairs Committee said in May 2026 that, subject to legal-linguistic verification, she would recommend that the plenary accept the Council's position.

One authorisation route, with a 27-month transition

The transition periods are calculated from the directive's eventual entry into force. The directive would enter into force on the 20th day after its publication in the Official Journal once adopted.

Member States would have 21 months from that point to adopt, publish and apply the laws and administrative provisions needed to comply with the directive. PIs authorised under PSD2 before the end of that 21-month period could continue providing and executing their authorised payment services until the end of month 27 without seeking a new authorisation or complying with the new Title II requirements.

Those PIs would have to submit the information needed for competent authorities to assess compliance by month 27. The assessment covers Article 3(3), points (c) to (f), (h), (q) and (r), and whether measures are needed to secure compliance or the authorisation should be withdrawn. A PI that complies with Title II would be deemed authorised under Article 13 and entered in the registers under Articles 17 and 18. A PI that does not comply by month 27 would be suspended from providing payment services until it supplied the necessary information and the authority verified it.

The position allows automatic authorisation for an existing PI where the competent authority already has evidence that the firm complies with Articles 3 and 13. The transition for EMIs is framed differently. An EMI authorised under EMD2 that had begun activities under the relevant national law before month 21 could continue those activities in its home Member State or another Member State until month 27 without applying for a new authorisation or complying with Title II.

By month 27, EMIs would have to provide all information needed for the competent authority to assess compliance with the specified Article 3(3) requirements. EMIs that comply would be deemed authorised as PIs and entered in the relevant registers. Where an assessment finds non-compliance, the authority would decide what measures are needed or withdraw the authorisation.

The same transitional architecture allows existing independent ATM deployers that are not servicing payment accounts to continue their services until month 27 without registration under Article 36 or compliance with the other Title II provisions.

Safeguarding and cash access

The Council's reasons say the directive strengthens safeguarding of user funds by ensuring their robust insulation from liquidation estates. It also seeks to optimise PIs' access to central bank settlement systems.

The position includes dedicated provisions on physical cash. It simplifies the rules for deploying independent ATMs and facilitates cash withdrawals without requiring a commercial purchase. The Council identifies these measures as particularly important in rural, remote and under-banked regions.

The companion Payment Services Regulation forms part of the same package. The Council's reasons say the agreed texts address challenges identified in the Commission's evaluation of PSD2, tackle payment fraud, increase consumer protection, improve transparency, improve access to cash and adapt payment rules to new market developments and technological innovation. The Council also says the package will enhance open banking and update licensing requirements once adopted.

From proposal to first-reading position

The Commission put forward the Payment Services Package in June 2023. The European Economic and Social Committee adopted its opinion in December 2023, and the European Central Bank adopted its opinion in April 2024. Parliament adopted its initial reports on PSD3 and the PSR in April 2024, while the ECON Committee confirmed its negotiating mandate in late 2024.

The Council's Working Party had worked on the proposals for two years when Coreper agreed its negotiating mandate in June 2025. Trilogues began in July 2025, followed by a final political trilogue in November 2025 and technical meetings to complete the compromise texts.

Coreper approved the compromise text in April 2026. The ECON Committee approved the agreed text in May 2026, and its chair then told the Council presidency that she would recommend acceptance at Parliament's second reading, subject to legal-linguistic verification.