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The PSD, which was finally passed by the European Parliament earlier this week, is intended to open the market to competition and remove obstructions to the creation of an EU-wide internal market for payments. The Directive must be transposed into national laws by 1 November 2009 - almost two years after the banking industry introduces the first payment instruments dictated by the European Commission's push for a single euro payments area (Sepa).
The European Savings Banks Group (ESBG) - an international banking association representing about one third of the retail banking market in Europe - has welcomed the resolution, but warns that the lengthy delays in approving the text could yet undermine the legitimacy of the new Sepa-inspired payment instruments.
The ESBG goes on to criticise the Directive, arguing that it risks weakening public confidence in electronic payments by opening the doors to a new category of non-bank 'payment institutions'.
Moreover, the Directive strengthens obligations and increases costs for providers of electronic payment services, says ESBG, whilst omitting cash - the most expensive means of payment for society as a whole - from its scope.
Chris De Noose, chairman of the ESBG management committee, says: 'An important milestone has been reached - but let us be realistic: this Directive alone will not create Sepa. Much rests on transposition and we look for evidence that other stakeholders - such as public authorities - commit to use the Sepa payment instruments.'