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Martin Al-Khawaja explains the significance of the Payment Services Directive (PSD2) in the European Union banking and payment markets in a 13-minute tutorial. He discusses the technical aspects of PSD2 and proposes a three-dimensional framework to navigate the market changes it will bring. PSD2 allows customers to grant third-party providers access to their account information and make payments. New entities, such as account information service providers, will emerge to aggregate data from various sources. PSD2 will impact banks and payment providers operating within the EU, requiring them to comply with the new regulation.
