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How PSD2 Impacts Marketplaces

Second Payment Services Directive (PSD2) is a European payment law that is administered by the European Commission.

PSD2 regulates payment services and payment service providers throughout the European Union (EU) and European Economic Area.

It will also help to ensure the protection of Buyer and Seller’s payment transaction.

Most of the Marketplace works as a mediator and facilitates the trade from the vendor to the buyer but does not act as a seller or reseller.

The seller sells the product and the buyer makes the payment for the product. Marketplace just passes the amount from buyer to seller after deducting the commission with financial risk (without any authorization/license).

There are many risks – economic, legal, and tax obligations associated with the sale of products or services to the Buyer.

Examples – products delivered to a consumer, returns, local VAT structure and licensing or mandatory insurance requirements for products/ services like – mandatory third party insurance for taxis.

PSD 2 aims to secure e-payment and expand financial services. There are two option –

1. If a platform receives the payment made by buyers and then payout to sellers.

  • For this flatform will have to obtain a payment license and become a regulated business.
  • For this, apply for a license and be regulated directly, which is very difficult and rare.

2. Use a PSD 2 compliance payment methods and allow them to keep control over the payment being paid out to your buyers.

Thus, that’s all for PSD2, Still, have any issue feel free to add a ticket and let us know your views to make the module better


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