Political agreement has been reached on a revision of the Payment Services Directive.

The agreement follows negotiations between the European Commission, the European Parliament and the Council of Ministers.

The European Commission proposed a revised Payment Services Directive as part of its payment package in July 2013. Although signifi-cant progress has been made in integrating retail payments in the EU into the current legislative framework on payments, several important areas of the payments market – such as card, internet and mobile payments – are still fragmented along national borders.

The agreed proposal aims to improve consumer protection against fraud, possible abuses and payment incidents, such as disputed transactions.

In addition, the European Banking Authority (EBA) will be asked to issue guidelines and draft regulatory technical standards in various fields, for example to ensure the establishment of adequate security measures or in order to clarify the rules on ‘passporting’ for payment institutions operating in several member states.

Passporting would allow firms to conduct business anywhere in the EU, provided they fulfil the relevant EU rules.

“This should create the right incentives for the emergence of new players and the development of innovative mobile and internet payments in Europe. This means more choice and better conditions for consumers and businesses,” the Commission said.

The formal adoption of the proposal is expected later this year.