The Directive replaces and updates Directive 2007/64/EC to establish a harmonised Union framework for retail payments, addressing market fragmentation, technological innovation and regulatory gaps. It defines scope and exclusions (cash, cheques, limited networks, certain telecom micro‑payments), clarifies acquiring, introduces notification requirements, and specifies categories of providers eligible to offer payment services across the Union (credit institutions, electronic money institutions, payment institutions and post‑office giro institutions). It recognises new services – payment initiation services and account information services – and sets authorisation, safeguarding and proportionate prudential requirements while prohibiting payment institutions from issuing electronic money.

The Directive strengthens consumer protection, transparency and liability: harmonised pre‑contractual and transaction information, free monthly statements, rights to terminate framework contracts, and caps payer liability for unauthorised transactions at EUR 50 except in cases of fraud or gross negligence. It requires immediate refunds for unauthorised transactions, an unconditional refund right for euro direct debits with specified exceptions, execution for the full amount within a maximum one‑day execution time, non‑discriminatory access to payment systems, strong security and incident‑reporting obligations, data‑protection compliance, an EBA central register and RTS development, enhanced cross‑border supervisory cooperation, ADR availability, enforcement powers and transitional and delegated‑act arrangements.