The Payment Services Directive (PSD) is a European Union regulation aimed at creating a single market for payment services across member states. It establishes rules for payment service providers, ensuring transparency, security, and consumer protection in electronic payments. The directive encourages competition and innovation in the payment industry, allowing new players to enter the market. The PSD has undergone revisions, with the latest version known as PSD2. This update enhances consumer rights and promotes the use of technology in payments, such as open banking. By allowing third-party providers access to bank data, PSD2 aims to improve the overall payment experience for consumers and businesses alike.