LONDON – The European Union’s Payment Services Directive (PSD) will cost Europe’s major banks €6 billion over the next 18 months in compliance costs, according to research by consultancy Payment Systems Europe.
The study, sampling 30 large banks and payment specialists across the EU, found that around 40% of banks believe PSD implementation will cost over €10 million and almost 25% thought the compliance bill would surpass €50 million. Almost 60% believed the PSD would not prove beneficial.
The PSD is designed to harmonise legal frameworks for cross-border payments across Europe, which are currently divided along member state lines, preventing effective competition within a single EU market. The directive will set stringent rules on banks’ disclosure, conduct and service provision for customers, and is scheduled for launch in November 2009.