PAYMENTS & COMPLIANCE
PSD2 & PSD3: What merchants should prepare for next
For iGaming operators, regulation directly impacts conversion, onboarding, and payment stability. As Europe transitions from PSD2 to PSD3, merchants must understand how the new framework will affect high-risk industries.
Vladimir Barkovskii, Legal Counsel at
SPAYZ.io
For high-risk
merchants, the priority should be working with partners that already meet minimum compliance standards
- Vladimir Barkovskii
and electronic money institutions. This means greater reliance on PSP stability. The package strengthens prudential requirements and supervision for PSPs, including authorisation rules, capital/own-funds expectations and risk assessment obligations.
Vladimir Barkovskii, Legal Counsel at SPAYZ.
s regulators push for tighter oversight and consumer protection, the distinction between compliance and competitiveness is fading. For payment-heavy sectors like iGaming, travel, or financial services, PSD3 represents not only a legal update but a strategic shift toward trust-driven growth. PSD2 reshaped European payments by introducing Strong Customer Authentication (SCA), expanding Open Banking, and tightening fraud controls. For iGaming, it created a delicate balance: stronger security reduced fraud but often added friction at checkout, affecting first-time deposit conversion. PSD3 + PSR refine this structure, close regulatory gaps, and strengthen supervision.
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STRONGER OVERSIGHT AND HARMONISATION
PSD3 is designed to increase consistency across EU member states while enhancing consumer protection. Regulators will gain broader supervisory powers over payment institutions
14 MARCH 2026 GIO
io, notes: “PSD3 is not just an update – it signals stricter accountability for payment institutions. For high-risk merchants, the priority should be working with partners that already meet minimum compliance standards, not those that adapt reactively. In regulated industries, payment disruption is not just a technical risk, but a commercial one.”
FRAUD, LIABILITY AND RISK ALLOCATION
PSD3 is expected to clarify liability rules, particularly around authorised push payment fraud and social engineering cases. The package clarifies and tightens PSP liability and anti-fraud duties (including impersonation scams), which may indirectly change merchant risk allocation through PSP rules, monitoring and settlement terms. For operators offering instant deposits and fast withdrawals, enhanced monitoring will likely become mandatory. Behavioural analytics, transaction risk scoring, and smarter routing will become a standard. While this may increase operational complexity, it also creates opportunity. Merchants that invest in intelligent fraud prevention and transparent checkout communication can protect margins without sacrificing conversion. The key will be balancing
real-time payments with intelligent safeguards that do not disrupt user flow.
OPEN BANKING MOVES FROM EXPERIMENT TO INFRASTRUCTURE
PSD2 opened the door to Open Banking. PSD3 aims to professionalise it by standardising service levels and access requirements for banks. In markets where card performance is declining, Open Banking can become a strong alternative rail. However, user experience remains critical. Complex authentication or inconsistent bank interfaces can still undermine deposit completion rates. Success will depend on optimising Open Banking flows while keeping authentication compliant but seamless. The providers who manage this balance effectively will gain a competitive edge.
WHAT SHOULD MERCHANTS DO NOW?
1. Audit your payment partners. Confirm licensing strength, safeguarding structures, and regulatory preparedness.
2. Review SCA implementation. Are exemptions used effectively? Is the mobile checkout experience friction-light but compliant? 3. Expect stronger fee transparency and clearer descriptors on statements. Ensure your trading name/descriptor setup is consistent to reduce disputes and confusion.
4. Integrate compliance into strategy rather than treating it as a reactive function. In high-risk sectors, regulatory misalignment can impact banking relationships, liquidity, and user trust.
THE BOTTOM LINE
PSD3 will not revolutionise payments overnight, but it will raise expectations around accountability and resilience. For iGaming, compliance and growth are no longer opposing forces. In 2025–2026, competitive advantage will belong to operators who align strong regulatory foundations with intelligent payment orchestration. Payments are a strategic asset – and under PSD3, they must be demonstrably secure, transparent, operationally resilient, and future-ready.
In the next regulatory cycle, the real differentiator will be how effectively operators convert compliance into product credibility, turning payment trust into a brand advantage.
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