PSD2, or the second Payment Services Directive, is an EU directive that regulates payment services and their providers within the territory of the EU and the European Economic Area. The aim of the directive is to increase competition within the EU’s payment industry, including the participation of companies that are not banks. PSD2 regulation improves and replaces the former EU PSD. PSD2 is explained by EU authorities as an attempt at creating a single, integrated market for payment services. PSD2 makes it easier for third-part companies to engage in financial transactions. PSD2 offers an opportunity to use, for example, social media and messaging applications for payments, traditionally only done with banking services. PSD2 regulations are likely to bring many new services into the payment industry and may hit at the stability of some banks — especially those without strong technological developments.