Labour MEPs will vote today for a report that proposes to make electronic payments more secure, give consumers more rights, and encourage more competition and innovation.
The plans aim to improve consumer protection against fraud, possible abuses and payment incidents, and promote competition through a regulatory framework that will make it easier for new and innovative providers of mobile and internet payments to enter the market.
Consumers will also have greater rights for refunds on debit card transactions.
Anneliese Dodds MEP, member of the European Parliament economic and monetary affairs committee, said.
"Today's agreement is an important step forward in making electronic payments for consumers safer as well as encouraging competition and innovation.
"Increased competition in this section will help drive down costs which we expect to be passed on to consumers across the UK and Europe.
"Making payments over the internet and with your mobile phone will now be safer than ever and opening the market allows new companies to offer more services that will make our lives easier."