The Payment Services Directive 2 (PSD2) is a European Union regulation aimed at improving payment services across member states. It enhances consumer protection, promotes competition, and encourages innovation in the financial sector by allowing third-party providers to access bank customers' accounts with their consent. This access enables new services, such as account aggregation and payment initiation. Additionally, PSD2 introduces stronger security measures for online payments, requiring multi-factor authentication to reduce fraud. By fostering a more integrated and secure payment environment, PSD2 aims to benefit consumers and businesses alike, ultimately leading to a more efficient digital economy in the EU.