CrateDB Blog | Development, integrations, IoT, & more

Modernizing Payments with PSD2 & PSD3

Written by Shiva Pullepu | 2025-01-06

At their core, PSD2 (Payment Services Directive) and PSD3 redefine how payments work in Europe. They challenge financial institutions, PSPs, and TPPs to think bigger: to create systems that are secure, transparent, and innovative while protecting consumers and enabling competition. Here’s the big picture:

  1. Enhanced Security: Strong Customer Authentication (SCA), fraud detection, and liability shifts put security at the center.
  2. Open Banking: APIs give third-party providers (TPPs) real-time access to customer data. It's about creating a connected ecosystem.
  3. Consumer Transparency: Clear, detailed transaction data, no hidden fees. Simple. Honest.
  4. Operational Excellence: Faster transaction monitoring, scalable data-sharing, and compliance automation.
  5. Market Competition: Level the playing field—access to payment systems for everyone.

Now here’s the question: How do you make it all work?

The answer: CrateDB. A distributed SQL database that scales effortlessly, analyzes data in real time, and handles both structured and semi-structured data like a pro. It’s built to meet the demands of PSD2 and PSD3. Let’s break it down.

1. Strong Customer Authentication (SCA) & Fraud Prevention

The future of payments is secure by design. CrateDB makes it happen with real-time processing and fraud detection. 

Example: Storing SCA Events in CrateDB

Every login attempt, device detail, and geolocation needs to be stored securely and queried instantly. With CrateDB: 


CrateDB can process millions of these events per second, enabling real-time fraud analysis. 

Learn More: CrateDB Real-Time Performance

2. Fraud Prevention: IBAN Verification

Matching IBANs with account names is crucial to prevent fraud. CrateDB handles large-scale joins across datasets. 

Example: IBAN Verification Query

This query executes instantly—even on billions of records—thanks to CrateDB’s distributed SQL engine. 

Learn More:
CrateDB for Fraud Detection 

3. Open Banking and API Access

APIs are the bridge between banks and TPPs. CrateDB ensures secure, fast, and reliable data exchange

Example: Real-Time Consent Management 
CrateDB stores and updates customer consent data in real time, empowering PSPs to provide transparency through a dashboard.

 Learn More: CrateDB API Use Cases

4. Data Sharing for Open Banking

Sharing data across PSPs is a cornerstone of PSD3. CrateDB’s distributed architecture ensures data is always available and replicated securely. 

Example: JSON Data for Open Banking APIs 

CrateDB supports semi-structured JSON, making it perfect for storing and querying TPP-related data.


Learn More: CrateDB and JSON 

5. Consumer Transparency

Give consumers what they deserve: clear, detailed transaction data. CrateDB enables real-time storage and querying for transparency. 

Example: Storing ATM Charges

Dynamic dashboards built with CrateDB + Kibana help display this information to consumers instantly.

6. Enhanced Transaction Monitoring

Transactions don’t just happen—they tell a story. CrateDB’s time-series capabilities help you analyze every detail.

Example: Monitoring Transactions in Real Time 

And with tools like Grafana, CrateDB powers dashboards that display anomalies instantly. 

Learn More: CrateDB Time-Series Analytics 

7. Compliance and Audit Trails

Compliance isn’t optional—it’s a necessity. CrateDB logs every action and event for full traceability.

Example: Audit Log 

CrateDB ensures these logs are immutable, meeting strict compliance requirements.

Learn More: CrateDB and Log Analysis 

Why CrateDB Stands Out

  • Real-Time Analytics: Process billions of rows of data instantly.
  • Scalable and Distributed: Built to grow with your business. 
  • JSON + SQL: The flexibility of JSON with the power of SQL. 
  • Cost-Effective: Designed for massive workloads without massive costs 
Let’s Build the Future of Payments.
PSD2 and PSD3 aren’t just regulations—they’re opportunities. With CrateDB, you’re ready to create a secure, transparent, and scalable payment ecosystem. It’s time to innovate.