Open Banking (PSD2)
aka Open Banking Ireland, PSD2, Account Information Services
EU regulatory framework that lets authorised third parties access bank account data (AIS) and initiate payments (PIS) on the customer's behalf. The basis for live bank feeds and payment-initiation tools.
Last reviewed April 2026
Definition
Open Banking in Ireland is implemented through the EU's Revised Payment Services Directive (PSD2), transposed into Irish law by the European Union (Payment Services) Regulations 2018. Two regulated activities matter for software: Account Information Services (AIS) and Payment Initiation Services (PIS). AIS providers can read transaction data from the customer's bank account with the customer's consent, which is what powers live transaction feeds in modern accounting software. PIS providers can initiate a SEPA Credit Transfer directly from the customer's account without redirecting to the bank's online banking. Both are regulated by the Central Bank of Ireland and require Strong Customer Authentication (SCA) at least every 180 days. Consent windows previously had to be re-authorised every 90 days under the original PSD2 RTS but were extended to 180 days from 2022 onward. PSD3 is in legislative process at EU level and will further harmonise the access regime, replacing PSD2 once adopted and transposed.
Why it matters for software choice
Bank-feed quality varies dramatically by provider. AIS connections that drop every 90 to 180 days, fail to refresh historical data, or only support a subset of Irish banks are a hidden cost in software that markets itself as 'connected'. Verify AIS coverage and consent-renewal UX before committing.
Authority sources
- Central Bank of Ireland: Payment Services Directive 2 (www.centralbank.ie)
- European Banking Authority: PSD2 (www.eba.europa.eu)
Software categories this affects
Vendors covered by this term
Revolut Business
EU-licensed business banking with Irish IBANs, SEPA Instant, and multi-currency accounts
Wise Business
Multi-currency business account with mid-market FX rates and EU IBAN for Irish SMEs
Payhawk
Spend management and company cards for mid-market European businesses
Soldo
Prepaid company cards with spending controls and automated expense capture for SMEs
Xero
Cloud accounting with direct AIB, BOI, and PTSB bank feeds for Irish SMEs
QuickBooks Online
Affordable cloud accounting with Irish bank feeds and a strong mobile app
Related terms
Irish bank feeds
An automated daily connection between an Irish business bank account and accounting software, removing CSV uploads. Modern feeds run over PSD2 Open Banking APIs; older feeds use Yodlee or Plaid screen-scraping.
SEPA Credit Transfer
Standard EUR-denominated bulk payment scheme used to pay suppliers, salaries and Revenue liabilities from Irish business bank accounts. Settlement within one business day across SEPA.
Strong Customer Authentication
PSD2 requirement that electronic payments use two of three authentication factors: knowledge (PIN), possession (phone or token) and inherence (biometric). Applies to Irish card and bank payments.