Best PSD2 Compliance Software

PSD2 Compliance Software Overview

PSD2 compliance software helps banks and fintech companies follow the rules laid out by Europe’s revised payment regulations. At its core, the software is about safely opening up access to account data while keeping fraud out and customer trust in. It supports things like secure logins, encrypted data sharing, and tracking who’s accessing what—basically, all the tools needed to meet strict security and transparency standards without slowing down innovation.

For businesses that deal with online payments or customer banking data, this kind of software isn’t just a box to check—it’s part of building something future-proof. Instead of patching together outdated systems, companies can use these platforms to handle third-party connections, verify user identity, and stay audit-ready. It makes it easier to offer smooth digital experiences while playing by the rules, which is a win for both compliance teams and end users.

PSD2 Compliance Software Features

1. Built-in TPP Authentication Tools: PSD2 opens the gates for third-party providers (TPPs) to plug into banks and financial institutions—if they’re legit. One of the key jobs of compliance software is to confirm that these third parties are who they say they are. That means verifying their credentials, checking their registration with the appropriate authorities, and making sure their digital certificates (typically eIDAS-based) are valid. Good software automates this process so there’s no guesswork or manual checks holding up integration.
2. Real-Time Transaction Risk Scoring: Every payment or account access attempt is not created equal. Some are low-risk, like a customer checking their balance. Others—like large money transfers or access from unfamiliar devices—raise red flags. PSD2 compliance solutions use smart analytics and behavior-based risk scoring to evaluate each interaction. If something seems off, the system can request additional verification on the spot. This helps reduce fraud without slowing down normal activity.
3. Consent Tracking and Revocation Management: When a customer agrees to let a third-party app access their account, that consent isn’t just a checkmark—it’s a legal contract. The software keeps a clear record of what permissions were granted, to whom, and for how long. Just as important, it lets users revoke that access anytime they want. The platform logs all these actions so there’s an audit trail if anything needs to be reviewed later.
4. Comprehensive Logging and Event History: Everything that happens in a PSD2-compliant system needs to be tracked—from API calls and login attempts to changes in consent and failed authentications. Compliance software captures a detailed, time-stamped log of all these events. These logs aren’t just for show—they’re a critical part of staying audit-ready and resolving disputes or incidents when they happen.
5. Pre-Built API Management Layer: Instead of building open banking APIs from scratch, compliance platforms usually come with a pre-built API management layer. This layer handles routing, throttling, security, and access control. It helps you expose endpoints for services like balance checks or payment initiation without having to reinvent the wheel. Plus, it ensures those APIs meet the technical specs required under PSD2 guidelines.
6. Flexible SCA Implementation Options: Strong Customer Authentication (SCA) is a big deal under PSD2, but one size doesn’t fit all. Good compliance software gives banks and financial providers options. Whether it's using biometric verification through a mobile app, sending one-time passcodes, or offering push notifications, the platform should support multiple authentication flows—and apply them based on the context and risk of the transaction.
7. TPP Sandbox and Testing Environment: Before third parties go live, they need a way to test their apps and services without poking around in real customer accounts. Most PSD2 compliance solutions include a secure sandbox environment. This lets TPPs try out their integrations using simulated data. It's a safe place to work out the bugs and confirm everything’s working correctly before going live in production.
8. Dashboard for Monitoring API Performance: Banks need to keep their APIs up and running smoothly—not just for customer satisfaction, but to stay in line with PSD2 availability standards. That’s why these platforms usually offer a dashboard that tracks uptime, response times, and error rates in real time. If an API starts lagging or fails altogether, alerts are triggered, and teams can jump on it quickly to avoid service-level breaches.
9. Multi-Country Compliance Configurations: For institutions operating across different EU countries, there’s no universal PSD2 playbook—each region may interpret certain elements a bit differently. Modern compliance tools allow you to tailor your configuration by region. Whether it’s localization, specific national regulator requirements, or language support, the software can be adapted to serve multiple jurisdictions from a single platform.
10. Ongoing Updates for Regulatory Changes: PSD2 isn’t frozen in time. Regulations evolve, technical standards get refined, and new security expectations roll out. The best software doesn’t leave you behind—it comes with regular updates to ensure you're always aligned with the latest legal and technical mandates. This takes a major burden off compliance teams and reduces the risk of accidental violations.
11. Fraud Detection Integration with Existing Systems: A lot of financial institutions already have fraud detection and monitoring systems in place. PSD2 compliance platforms are built to plug into those existing tools, sharing relevant data and alerts. This kind of integration helps create a more comprehensive view of customer behavior and potential threats, rather than working in a silo.
12. Certificate Lifecycle Management: Managing digital certificates—especially when they expire or get revoked—is a hassle no one wants to deal with manually. PSD2 software helps automate certificate validation, renewal, and revocation processes. It keeps track of expiration dates and flags any issues before they become a problem. That way, there’s no interruption in TPP connectivity due to expired or invalid certificates.
13. Customer Self-Service Interface: Some solutions include a user-friendly interface that allows end customers to manage their PSD2-related settings. They can review which apps they’ve given permission to, revoke access instantly, and see a history of recent activity. It’s an added layer of transparency and control that customers increasingly expect from digital financial services.
14. Fallback Mechanisms and Redundancy Tools: Even the best systems encounter hiccups. PSD2 platforms often include fallback options to maintain minimal service in the event of disruptions. This might mean alternate API endpoints, temporary caching, or redirecting requests during outages. These features are key for avoiding downtime penalties and keeping customer trust intact.

The Importance of PSD2 Compliance Software

PSD2 compliance software isn’t just about ticking off regulatory boxes—it’s what keeps the modern banking ecosystem running safely and smoothly. With financial data being more connected than ever, especially through open banking, this software makes sure everything stays secure, transparent, and in line with the law. It gives banks and third-party providers the tools they need to handle sensitive customer information responsibly, authenticate users properly, and detect fraud before it happens. Without these systems in place, there’s a real risk of data breaches, unauthorized access, and serious trust issues with customers.

On top of that, PSD2 compliance tools help level the playing field. By giving new financial players secure ways to access banking data and initiate payments, it opens the door to more competition and innovation—benefiting both businesses and consumers. But this only works if everyone plays by the same rules, which is why the tech behind compliance is so critical. It ensures that no matter how fast digital finance evolves, customer privacy and safety aren’t sacrificed. In short, this software isn’t just about meeting legal requirements—it’s about building a financial environment that people can actually rely on.

Why Use PSD2 Compliance Software?

1. It Keeps You Out of Regulatory Trouble: Let’s be honest—regulations are complex, and PSD2 is no exception. If you’re not handling things like customer authentication or third-party access exactly by the book, you’re opening yourself up to fines and legal headaches. PSD2 software helps you stay within the rules without having to memorize every clause of the directive. It takes care of the nitty-gritty so you don’t have to.
2. Your Customers Expect Digital Control: These days, people want to see who has access to their financial data and be able to turn that access on or off instantly. Compliance software makes that possible by giving users a straightforward way to manage permissions. When you offer that kind of transparency, you build credibility and trust—both of which are worth their weight in gold.
3. You Save Time by Automating the Boring Stuff: Trying to manage compliance manually is not only tedious—it’s risky. PSD2 software handles tasks like logging access requests, tracking user consent, and verifying transactions behind the scenes. That means less manual checking, fewer mistakes, and more time for your team to focus on growth or product development instead of red tape.
4. You’ll Be Ready for Audits Without the Panic: Anyone who's ever gone through a compliance audit knows how stressful it can be. With PSD2 software in place, you’ve already got records, logs, and processes lined up. No more scrambling at the last minute or digging through spreadsheets. Everything’s there when you need it.
5. It Lets You Plug Into the Open Banking Ecosystem: PSD2 isn't just about rules—it’s also about opening up new opportunities. The regulation forces banks to open their systems to authorized third parties, which means new services, new integrations, and fresh revenue models. The software helps you securely offer or use APIs to connect with other players in the space.
6. Fraud Detection Becomes Smarter and Faster: Compliance software often comes with built-in risk analysis tools. These tools watch for strange patterns in real time—like logins from odd locations or payment attempts that don’t match a user’s usual behavior. Catching this stuff early helps prevent fraud and keeps both you and your users safer.
7. It Future-Proofs Your Business: Regulatory frameworks don’t stay the same for long. Whether it’s updates to PSD2, the rollout of PSD3, or entirely new standards down the line, good compliance software is designed to evolve. That means you won’t be stuck with outdated systems or scrambling to rebuild your setup from scratch when new requirements hit.
8. Helps You Compete With Bigger Players: Smaller institutions often struggle to keep up with compliance due to limited resources. PSD2 software levels the playing field by giving smaller teams access to the same capabilities as big banks. With the right tools, you can compete in areas like security, open banking access, and user experience—without a giant budget.
9. You’ll Deliver a Smoother User Experience: One of the lesser-talked-about benefits is how much better the customer journey becomes. Strong authentication doesn’t have to feel clunky when it’s implemented properly. PSD2 software often includes well-designed interfaces and workflows that keep things secure and seamless.
10. Reduces Risk of Human Error: Let’s face it—people make mistakes. Whether it’s forgetting to log an API call or mismanaging consent records, one oversight can lead to big problems. PSD2 software automates these high-risk touchpoints, helping you avoid slip-ups that could cost you reputation, money, or both.
11. Gives You Clear Visibility Into What’s Going On: Good compliance platforms don’t just do the work behind the scenes—they also show you what’s happening. You’ll typically get dashboards, analytics, and alerts that give you real-time insight into data sharing, API calls, security issues, and more. It’s way easier to make informed decisions when you can actually see what’s going on.
12. You Can Build With Confidence: For fintech developers, one of the biggest benefits is knowing your infrastructure is built on something solid. If you’re integrating with banks or offering payment services, PSD2 compliance software lets you innovate without worrying about tripping legal wires or building features that’ll get flagged later.

What Types of Users Can Benefit From PSD2 Compliance Software?

• Up-and-Coming FinTech Founders: Trying to build the next great financial app? You’re going to need access to banking data and payment rails—and PSD2 compliance software helps you do it the right way. It takes the guesswork out of things like consent handling, data access, and API security so you can focus on your product instead of worrying about a letter from the regulator.
• Developers Integrating with Bank APIs: If you're the person coding the actual connections between apps and banks, PSD2 software is your best friend. It helps you manage things like dynamic consents, API calls, error handling, and SCA logic. It's like having a smart toolkit that makes sure what you're building doesn’t blow up during production—or during an audit.
• Security and Risk Teams in Big Banks: Banks need to protect customer data and make sure no unauthorized actor slips through the cracks. These teams lean on compliance software to validate every access request, enforce strong customer authentication rules, and log everything neatly for audit trails. Bonus: it makes fraud harder and detection faster.
• Legal and Risk Advisors at Payment Firms: Whether you're in-house or part of a consulting team, if you advise businesses in the financial space, PSD2 compliance software is a game-changer. It gives you visibility into how client systems are structured for compliance, and makes it easier to spot gaps before regulators do.
• RegTech Vendors Offering White-Labeled Compliance Tools: Companies that offer regulatory tech solutions often bundle or white-label PSD2 capabilities. Compliance software helps them fast-track offerings without reinventing the wheel—whether it’s SCA modules, API exposure layers, or consent dashboards.
• Digital Wallet Providers: If you’re building or operating a digital wallet that needs to initiate payments or pull in account info, you’ll need to play nicely with PSD2 rules. This software helps you secure the required consents, pass regulatory scrutiny, and smooth out integrations with various banks.
• Third-Party Apps That Access Account Data (AISPs): Budgeting tools, financial dashboards, and similar apps need to hook into banks with full transparency and security. PSD2 platforms give these services a clean, compliant way to do that—making sure user data flows with permission, and only as much as necessary.
• eCommerce Platforms That Handle Direct Bank Payments: Some merchants and online stores offer direct-from-bank payments (vs. cards). For them, PSD2 compliance tools ensure those payments are initiated securely and that SCA flows don’t trip up customers and kill conversions. Smooth checkout + full compliance = win-win.
• IT Architects Building Out Open Banking Infrastructure: These folks design how everything connects behind the scenes. With PSD2 tools, they get access to frameworks, SDKs, and monitoring features that help them build compliant systems from the ground up—without gluing a bunch of manual steps together.
• National Regulators and Supervisory Authorities: Believe it or not, even watchdogs benefit. These organizations often use aggregated data or reporting outputs from compliance tools to monitor who’s following the rules, who’s not, and where things might be breaking down. It makes oversight cleaner and more proactive.
• Freelance Compliance Consultants Specializing in PSD2: Independent pros helping startups and mid-size firms navigate PSD2? This software gives them the tools to do their job faster and more confidently—complete with dashboards, alerts, and compliance checklists that make them look like heroes to their clients.
• Large Enterprises Operating Multiple Brands or Services: Bigger companies often have multiple financial products under one umbrella. Managing compliance across all of them without a centralized system is a nightmare. PSD2 platforms offer a bird’s-eye view of how each brand or product is complying—so teams don’t have to reinvent the wheel in each division.
• Customer Support Teams That Handle Payment Issues: These are the folks who get the angry calls when something goes wrong. A solid PSD2 setup gives them access to logs, traceable user actions, and authentication history. That way, they can actually help resolve issues faster instead of just shrugging and filing tickets.

How Much Does PSD2 Compliance Software Cost?

Getting PSD2 compliance software isn’t a one-size-fits-all purchase, and the price tag reflects that. For smaller businesses, it might cost a few thousand dollars a year, especially if you're only looking for the basics like secure customer login and reliable API access. But if you’re dealing with a more complex setup—think multiple services, layers of security, and detailed monitoring tools—you’re likely looking at a much higher investment. Costs can ramp up quickly when you need advanced features or custom configurations to match your infrastructure.

It’s also important to remember that the software cost is just one part of the overall equation. You’ll probably need to budget for setup and integration, training your team, and possibly upgrading your tech stack to make sure everything runs smoothly. Then there's the ongoing maintenance and updates to stay aligned with any changes in regulations. Even though the upfront and recurring expenses can feel steep, it’s ultimately a necessary step if you're working with payment data or open banking. Skimping on compliance isn’t really an option—it’s about keeping your systems legal, secure, and trustworthy.

What Software Can Integrate with PSD2 Compliance Software?

PSD2 compliance software works best when it's plugged into the digital tools that banks, fintechs, and online businesses already rely on. For example, accounting platforms and invoicing tools often connect with PSD2 systems to automate payment flows and streamline financial data sharing. These kinds of integrations allow users to initiate payments or pull transaction data without bouncing between apps, all while staying within the limits of regulatory requirements. Even mobile banking apps benefit from PSD2 compliance software, especially when it comes to safely linking to third-party services or giving users more control over their financial information.

On the security side, fraud detection engines and transaction monitoring tools are a natural fit for PSD2 integration. They help flag suspicious activity and ensure that high-risk transactions get the extra scrutiny they need. eCommerce platforms can also tie into PSD2 systems to support secure checkouts and offer alternative payment methods that rely on direct bank transfers. What ties all of these together is the need for fast, secure, and compliant access to financial data—and PSD2 compliance software is the glue that helps make that happen across different systems.

Risk Associated With PSD2 Compliance Software

• Overcomplicating the User Experience: Adding layers of security is a must under PSD2, but it can backfire if not handled well. Clunky multi-factor authentication flows or clumsy consent pop-ups can frustrate users and lead to abandonment. There’s a fine line between compliance and making users jump through too many hoops. If the software doesn’t strike that balance, customer satisfaction takes a hit—and in a competitive space like banking, that’s a big deal.
• Security Gaps in Third-Party Integrations: Since PSD2 cracks open the banking ecosystem, third-party providers (TPPs) gain access to customer accounts through APIs. But every new integration is a potential security hole. If the compliance software doesn’t thoroughly vet or monitor who’s connecting and what data they’re accessing, it leaves room for attackers to sneak in. Weak access controls or sloppy endpoint management can turn into serious breaches fast.
• Incomplete or Inconsistent API Behavior: Not all APIs are created equal, and PSD2 compliance doesn’t magically guarantee smooth interoperability. Banks might expose APIs that technically follow the rules but behave unpredictably across different use cases. If the software doesn’t normalize those inconsistencies or test against edge cases, developers integrating with it can run into all sorts of problems—leading to downtime, failed transactions, and unhappy partners.
• Regulatory Misalignment Across Borders: PSD2 is an EU regulation, but each country interprets and implements it a little differently. This creates a maze of slightly varying rules that compliance software must navigate. If the software doesn’t account for localized legal differences—like how consent must be handled or how APIs should respond—it risks falling out of line in certain jurisdictions. That can lead to fines or delays in go-to-market plans.
• Latency and Performance Bottlenecks: When you start adding authentication checks, consent validation, logging, and fraud analysis into the transaction flow, you’re stacking a lot of processing into what used to be a simple payment. Poorly optimized compliance software can drag down performance and cause delays. If customers experience lag every time they try to make a payment or check their balance, trust in the platform starts to erode.
• Unclear Audit Trails or Log Gaps: PSD2 requires traceability—you need to be able to show who accessed what and when. But not all compliance tools do a great job of capturing or storing that data cleanly. If log records are incomplete, inconsistent, or hard to retrieve, it can cause major headaches during an audit. Worse, if an incident occurs and you can't trace what happened, you're flying blind in a high-stakes environment.
• Outdated Security Practices in Legacy Systems: Banks and financial institutions often run on legacy infrastructure. Trying to bolt modern PSD2 software onto an old system that wasn’t built for open banking can be risky. There’s potential for mismatched protocols, poor encryption standards, or unpatched vulnerabilities that the new software doesn’t catch. These technical gaps open the door to threats, even when the surface layer appears compliant.
• Vendor Lock-In and Lack of Flexibility: Some PSD2 software providers package everything into one platform—which sounds convenient until you want to switch vendors or upgrade specific components. If the system is too tightly coupled or doesn’t play well with other tools, institutions can get locked into rigid contracts and expensive upgrades. That kind of inflexibility slows down innovation and adds long-term operational risk.
• Insufficient Real-Time Monitoring: Real-time visibility is crucial when handling sensitive financial data, especially with multiple external connections active at once. But not all compliance solutions offer strong real-time oversight. If the software doesn’t alert on suspicious activity or system failures as they happen, issues can fly under the radar for hours—or even days—before anyone notices. That delay can be costly.
• Mismanagement of Customer Consent: One of the trickiest areas of PSD2 is how customer consent is gathered, stored, and enforced. If the software fails to capture the right level of detail, or if it lets TPPs access data beyond the scope of consent, it puts the institution at legal and reputational risk. Even small errors—like not honoring a withdrawal of consent in time—can turn into regulatory violations or PR nightmares.
• Lagging Behind Regulatory Updates: Regulations evolve, and PSD2 is no exception. If compliance software doesn’t stay in sync with updated standards, like changes to authentication exemptions or new TPP requirements, it becomes a liability. Institutions relying on outdated or slow-moving tools risk falling out of compliance without even realizing it. That’s especially dangerous in a space where regulators are increasingly active and penalties are steep.

Questions To Ask Related To PSD2 Compliance Software

1. Does the software support seamless integration with our current systems? If the answer’s “kind of” or “with heavy customization,” you may be in for a long, expensive road. Ask how the software connects with your existing tech stack—banking platforms, CRM, authentication tools, etc. A truly compatible solution should play nice with what you already use, not force you to rebuild your entire setup just to stay compliant.
2. How does it handle strong customer authentication (SCA)? SCA is non-negotiable under PSD2. You’ll want to know exactly how the software verifies user identity—does it support biometrics, two-factor authentication, one-time passwords? The key is not just being compliant, but also not making your customers hate logging in.
3. Is the platform ready to handle third-party access securely? One of the biggest pieces of PSD2 is opening up account access to third-party providers. So the software should have airtight API security, proper consent protocols, and monitoring in place. Ask how it ensures that only authorized third parties get access—and what happens when something suspicious comes up.
4. Who takes care of updates when regulations shift? PSD2 isn’t set in stone. Rules evolve, guidelines get refined, and your software needs to keep up. Ask if the vendor provides automatic updates and how fast they implement changes when regulators issue new guidance. You don’t want to be left scrambling every time something changes.
5. What kind of monitoring and reporting tools come with it? You need to know what’s happening inside the system—who’s logging in, which APIs are being hit, what data’s being shared. A good PSD2 solution offers real-time dashboards, audit logs, and customizable reports so you can stay on top of everything without digging through raw data or waiting on IT.
6. Can we scale this as we grow? If you’re expecting to expand into new markets, roll out new services, or onboard more users, your compliance software needs to keep pace. Ask what happens when your transaction volume spikes or your user base doubles. If the system slows down under pressure, that’s a problem.
7. How easy is it for our team to use and manage? Even the most secure, regulation-proof software won’t help you if no one on your team understands how to operate it. Ask for a demo. See what the admin dashboard looks like. How intuitive is it? Will your developers need weeks of training, or can they hit the ground running?
8. What’s the total cost beyond the sticker price? Don’t stop at licensing fees. There could be charges for setup, integrations, maintenance, support, or adding new modules. Get a full breakdown of costs, and ask what’s included—and what’s not. That “affordable” platform might not feel so affordable once the extra invoices start rolling in.
9. How’s the vendor’s track record in the financial compliance space? This isn’t the time to take a chance on someone unproven. Look into the vendor’s experience with PSD2 specifically, not just general fintech. Who else uses their platform? How long have they been doing this? Don’t just rely on polished sales pitches—dig for real-world feedback or case studies.
10. What kind of customer support is available if things go sideways? When something breaks, will you get a human on the phone, or just a ticket number and a prayer? Ask what kind of support comes with your package—24/7 live chat? Dedicated account manager? Email-only? The right help at the right time can make or break your compliance efforts.