In the European context, technology driven transformations in the payment system are also supported by regulatory interventions that increase competition and innovation. In 2007, the Payment Service Directive (PSD) introduced a new category of payment service providers, the “Payment Institution”.
The new directive (PSD2), which will take effect in January 2018, paves a stable path towards further innovation by regulating the activity of “third parties providers” (TPP). These are Fintech firms that offer payment initiation and account information services by exploiting the new business opportunities provided by  3  technological innovation, positioning themselves between payment service providers and final customers.