5 key takeaways
- PSD3 and the Payment Services Regulation (PSR) reached provisional political agreement in November 2025 — final texts are expected in H1 2026, with a 21-month transition period meaning full application around 2027-2028
- The single biggest structural change: PSD3 merges the Payment Institution (PI) and Electronic Money Institution (EMI) regimes into one unified Payment Institution authorised to issue e-money
- Existing Polish EMI and KIP licences will need to be converted — but national authorities (KNF) will manage this process with a transitional period
- PSD3 tightens substance requirements — letter-box arrangements are no longer acceptable, management and critical functions must be in the home state
- FIDA (Financial Data Access) runs in parallel with PSD3 and extends open banking obligations to a much broader data set — investments, pensions, insurance, mortgages
PSD3 represents the most significant structural change to EU payment services regulation since PSD2 – and it directly affects every EMI and payment institution licensed in Poland. This post explains what PSD3 requires, what the EMI/PI merger means in practice, and what Polish payment businesses should be doing now.
For context on the current Polish licensing framework, see EMI vs KIP — Which Payment Licence Do You Need in Poland?
PSD3 Poland Payment Institution EMI: The Legislative Timeline
<cite index=”338-1″>The European Parliament and the Council reached provisional political agreement on PSD3 and PSR on 27 November 2025. Final texts are expected in the Official Journal in H1 2026, with a 21-month transition period meaning the new framework will apply in 2027-2028.</cite>
| Milestone | Timing |
|---|---|
| Commission proposal | June 2023 |
| Provisional political agreement | November 2025 |
| Expected publication in Official Journal | H1 2026 |
| Entry into force | 20 days after publication |
| End of 21-month transition | 2027-2028 |
| Polish transposition deadline | Within 21 months of publication |
The Biggest Change: EMI and PI Merge Into One Licence
This is the structural change that will affect every Polish payment institution and EMI. PSD3’s single biggest structural change is the merger of the Payment Institution and Electronic Money Institution regimes into one unified Payment Institution authorised to issue e-money.
In practice, this means:
- There will be no separate EMI licence under PSD3 — all payment services providers, including those that issue e-money, will hold a single Payment Institution licence
- Existing EMI licences and KIP licences will need to be converted to the new unified licence during the transitional period
- The distinction between “EMI activities” and “PI activities” disappears — a unified PI can issue e-money and provide all payment services under one authorisation
What this means for existing Polish EMIs and KIPs
Existing Polish EMI and KIP licence holders do not need to re-apply from scratch. Consequently, KNF will manage a licence conversion process during the transitional period. Nevertheless, the process will require updated documentation, a review of governance arrangements against PSD3’s enhanced substance requirements, and potentially updated capital calculations.
What this means for new applicants
Companies currently applying for — or planning to apply for — a Polish EMI or KIP licence face a choice. Specifically:
- If you apply now under PSD2, you receive a licence under the current framework that will need conversion under PSD3
- If you wait for PSD3 transposition, you apply directly under the new unified framework — but wait 12-24 months for the framework to be in place
For most businesses, applying now under PSD2 and converting later is the more commercially sensible path — particularly given the KNF authorisation timeline of 4-12 months regardless of framework.
PSD3 Poland Payment Institution EMI: Other Key Changes
Substance requirements — letter-box arrangements prohibited
In line with AIFMD 2.0, MiCA and DORA trends, PSD3 codifies that letter-box arrangements are not acceptable — the head office, management and critical functions must be in the home state.
In practice, this affects Polish entities that operate with a minimal Polish presence while their real management and operations sit elsewhere. Specifically, KNF will expect to see:
- Senior management physically present and genuinely active in Poland
- Critical compliance, risk and AML functions located in Poland
- Real decision-making happening within the Polish licensed entity
Consequently, Polish payment institutions that have operated with thin local substance should use the PSD3 transition period to restructure their operational model.
Direct access to payment systems
PSD3 gives payment institutions clearer rights to direct access to payment systems — including TARGET2 and instant payment schemes — alongside banks. This reduces dependency on sponsor banks, which has been a significant operational and cost constraint for Polish payment institutions. Furthermore, it opens new opportunities for Polish fintechs to build more direct payment infrastructure.
Enhanced fraud liability — IBAN-name check and APP fraud
PSD3 introduces mandatory IBAN-name verification for credit transfers and strengthens liability rules for Authorised Push Payment (APP) fraud. Specifically, payment institutions will face increased liability for fraudulent transactions where verification procedures were not followed. Consequently, Polish payment institutions should begin reviewing their fraud detection and payment verification processes now.
Supervisory convergence
EBA gains stronger coordination powers over national competent authorities under PSD3. More peer reviews, binding mediation and consolidated supervisory reporting are expected. Consequently, KNF supervision of Polish payment institutions will increasingly align with EBA-wide standards.
FIDA — The Parallel Framework You Also Need to Know
Running in parallel with PSD3 is the Financial Data Access (FIDA) Regulation. FIDA extends open-banking-style access to a much broader data set beyond payment accounts — investments, pensions, insurance, mortgages and loans, creating a new regulated category of Financial Information Service Provider (FISP).
FIDA is still in trilogue — final agreement and entry into force are expected in 2026-2027. Nevertheless, Polish fintech businesses that have built products on PSD2 open banking should begin assessing how FIDA will expand their data access obligations and opportunities.
What Polish Payment Institutions Should Do Now
Step 1 — Assess your current licence against PSD3’s unified framework Map your current EMI or KIP licence against PSD3’s requirements. Specifically, identify whether your governance structure, substance arrangements and capital levels will meet the new requirements.
Step 2 — Review your substance arrangements If your Polish entity operates with thin local substance, begin restructuring now — the PSD3 transition period is not long enough to build substance from scratch at the last minute.
Step 3 — Assess fraud liability exposure under new APP fraud rules Review your payment verification and fraud detection processes against PSD3’s enhanced requirements. Furthermore, assess your contractual liability arrangements with clients for fraudulent transactions.
Step 4 — Monitor the legislative timeline PSD3 final texts are expected shortly. Consequently, track publication in the Official Journal and KNF’s implementation guidance — national transposition requirements may add Poland-specific obligations.
Step 5 — Begin FIDA assessment Identify which of your products or services may fall within FIDA’s scope, what data access obligations FIDA will impose, and how FIDA interacts with your existing PSD2 compliance framework.
If you have questions about PSD3, the EMI/PI merger or KNF licensing in Poland, get in touch. For more on fintech regulation in Poland, see the FinTech, Banking & Financial Regulation practice area page.
Related posts:
- EMI vs KIP — Which Payment Licence Do You Need in Poland?
- Expanding Your US Fintech or Technology Business to Poland
- DORA Compliance Poland KNF
- Fintech, AI Act and NIS2 Lawyer in Poland
Katarzyna Szczudlik is a Partner at Schoenherr in Warsaw and one of Poland’s leading fintech lawyers advising payment institutions on KNF licensing, PSD3 and EU payment regulation. Ranked by Chambers & Partners (FinTech) and Legal 500 EMEA. Get in touch.
