PSD2 (payment service directive) is expected to disrupt the European banking industry. The fundamental goal of PSD2 is to reduce cost and increase competition from non-traditional players (payment service providers). PSD2 aims at reducing the entry barrier for a FinTech firm and to enhance consumer protection and convenience. PSD2 heightens the prospects for FinTech firms who are in the business of providing payment services by giving them access to the customers. For the banks, the “Access to the Accounts” (XS2A) rule will impose the need to have a standardized API in order to facilitate third-party access to any bank account in the area.