Knowledge Centre

 - Definitions of key terms

          What is PSD2?

PSD2 or the Payment Service Directive 2, is an EU directive (Directive 2015/2366) which sets out the requirements for businesses providing payment services. Its three aims are to:

  1. Promote innovation

  2. Improve consumer protection

  3. Make payment both safer and more secure.


          What are the Payment Services Regulations?

The Payment Service Regulations set out the rules relating to payment services. The Payment Service Regulations 2017 replaced the Payment Service Regulations 2009.

Key features of the Payment Services Regulation: 

  1. Sets out rules for payment service providers

  2. Increased payment security

  3. Increased payment safety


          What is a payment account?

A payment account is an account held in the name of the consumer used for the execution of payments.


Key features of a payment account are:

  1. Place funds

  2. Withdraw funds

  3. Execute payments

  4. Receive payments


Examples of payment accounts are:

  1. Current accounts

  2. E-money accounts


          What is money remittance?

Money remittance is defined as a service for the transfer of money without a payment account being created, where:

  1. Funds received by a payer for the sole purpose of transferring the amount to a payee, or

  2. Funds received on behalf of and made available to the payee.


         What is passporting?

Passporting enables a firm regulated in one EU country (within the European Economic Area) to provide financial services in other EU countries using a single license. Passporting enables the authorised firm to:

  1. Set up a branch in an EEA state

  2. Provide cross-border services or advice

Our Blog & Insights

Get in touch

 Contact Us
Telephone: 0207 866 2512 
International: 442078662512

Buckingham Capital Consulting Ltd  |  One Kingdom Street, London, W2 6BD  |  Telephone: 0800 689 0501  |   Email:

Registered in England and Wales registration number: 08744241


Copyright 2013 - 2021 Buckingham Capital Consulting Ltd