PSD2
PSD2 (Payment Services Directive 2) is a European Union regulation that governs electronic payment services, aiming to enhance security, promote innovation, and increase competition in the financial sector. It mandates strong customer authentication (SCA) for online payments and requires banks to provide third-party providers (TPPs) with access to customer account data through APIs, enabling services like account aggregation and payment initiation.
Developers should learn PSD2 when building or integrating financial applications, such as fintech platforms, banking apps, or payment gateways, to ensure compliance with EU regulations and leverage open banking opportunities. It is crucial for implementing secure authentication flows, accessing bank APIs for account information or payment services, and developing innovative financial products that rely on real-time data sharing.