With the Payment Services Directive 1 (PSD1) which enter into force in 2009 for the first time in EU countries, the main aim of the European Union was to develop an efficient, fast, standardized, secure, and competitive payment market among the union countries. With the revision made by the European Commission in 2015, PSD2 (Payment Services Directive 2) replaced PSD1. It entered into force in the EU in 2018.
Two different notions have ensued with PSD2.
AISP is a service that enables the customer to monitor account information in multiple banks from a single screen.
PIPS is a service where the customer can make online purchases through a third party payment provider.
It is a payment services directive that creates a new competitive environment between banks and service providers and increases service. Finally, AISP and PIPS should perform customer sanction screening and ensure AML compliance.