2 PAYMENT METHOD PROFILES: PAY BY BANK
In Europe, the revised Payment Services Directive (PSD2) has served as the regulatory standards regarding security, customer permissions, and how consumer data is shared between banks and third-party service providers. 474 A third iteration of the Payment Service Directive (PSD3) aims to continue to build on that framework and as of July 2025 is moving through the regulatory and legislative process. 475 Regulation in Australia is focused on the sunsetting of the BECS system and checks in favor of the wider use of the real time payments platform New Payments Platform by 2030. 476 Case Studies Case Study: The United States 2024 represented a year of change for the U.S. regulatory environment. Ahead of an upcoming election, the Consumer Financial Protection Bureau (CFPB) pushed forward in the rulemaking process across several areas including allowable fees of credit cards and banks, junk fees from various apps, and rules concerning large participants and data brokers. One of the more significant rules that was progressing was Open Banking Rule 1033. This rule aimed to set the stage for third-party data aggregators’ participation in account-to-account transaction environments. The proposed rule aimed to mandate financial institutions and regulated payment service providers to share covered data, that is consumer’s data covered by a financial product or service, with third-party providers. Third-party providers as defined by the proposed rule could be any person or entity not controlled by a financial institution that obtains a consumer’s consent to access covered financial data. Similar to the main objectives of Europe’s revised Payment Services Directive (PSD2), further integrating the European payments market, leveling the playing field by inviting more service providers, and increasing security, Open Banking Rule 1033 was intended to increase transparency and consumer control of personal financial data and how it was to be used to facilitate the development of more bespoke financial products and services at a lower cost through increased competition. 477 Congress bestowed the authority and jurisdiction to regulate open banking to government agencies through the Dodd-Frank Act of 2010. The CFPB made good on that authority during a transitionary period in government. Post the 2024 election, several regulatory decisions have been ceased in the United States, with specific scrutiny of the CFPB. This scrutiny and regulatory uncertainty culminated with the rolling back of Open Banking Rule 1033 in early 2025. However, as of July 2025 the CFPB has filed a motion to stay with the aim of “substantially revising it and providing robust justification.” 478
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