Licence for payment services under PSD2

New rules are in place for internet payments and online payment services.  PSD2 came into force in the Netherlands on Feb. 19, 2019. The Dutch rules of PSD2 can be found here.  PSD2 has important implications for anyone providing or wishing to provide payment services.

PSD2 rules for online payments

Two new payment services have been introduced under PSD2: initiation of (internet) payments (payment initiation services) and provision of consolidated information on (online) payment accounts (account information services). PSD2 requires banks to give these new service providers, based on their customer’s consent, access to those customers’ payment accounts. Electronic commerce platforms (e-commerce platforms) that perform payment services themselves must, in principle, be licensed to perform their payment services as of the implementation of PSD2.

Existing payment service providers are subject to new obligations under PSD2. For example, PSD2 sets new rules on controlled and sound business operations. PSD2 also introduces new obligations for licensees. In addition, certain shareholders of licensees must have a declaration of no objection (vvvb).

8 payment services for which a DNB licence is necessary

The revised Payment Services Directive – the Payment Services Directive (2015/2366/EU) (PSD2) – includes eight payment services requiring a license. These payment services can be offered either separately or in combination:

• Services offering the possibility of placing cash in a payment account held by the payment service provider, and all the operations required for operating a payment account
• Services enabling cash withdrawals from a payment account, and all the operations required for operating a payment account
• Services enabling payment transactions, including transfers of funds, to be performed on a payment account with the user’s payment service provider or with another payment service provider
• Services through which payment transactions are carried out where the funds are backed by a line of credit provided to the payment service user
• Money transfers (money transfers)
• Payment initiation services
• Account information services

Licence duty for account information service under PSD2

There is a  new licensing requirement amongst others if a party enters into an agreement with an account holder to provide an account information service. If a licensed account information service provider outsources to another party the retrieval of payment data from a licensed account information service provider, and this party thereby has or may have insight into the personal security data of a payment service user or a token of that security data, there is an agreement – through the licensed account information service provider – established by this party with the payment service user for the provision of an account information service. Such a party is therefore also subject to licensing. A number of activities do not require a license, but are subject to a registration obligation, such as limited networks, or a notification obligation, such as for telecom services.

Supervision and enforcement of PDS2 regulations

In the Netherlands, four regulators are working on the supervision and enforcement of PSD2 regulations:

• DNB is prudential regulator. It issues licenses to banks, payment institutions and electronic money institutions. DNB also oversees, among other things, the financial position of banks, payment institutions and electronic money institutions, secure access to payment accounts, risk management and authentication (the way in which you identify yourself to the bank and authorize access to the account).
• The Consumer and Market Authority (ACM) oversees access to payment systems, payment account services and fees for the use of payment instruments.
• The Financial Markets Authority (AFM) supervises the provision of information by payment service providers. The AFM monitors how payment service providers treat their customers.
• The Personal Data Authority (AP) oversees the processing of personal data.

Applying for a license for payment services with DNB.

You can apply to DNB for a license to provide payment services. You can apply via the application form in the Supervision Digital Desk on DNB. Below you will find a link to Digitaal Loket Toezicht here and to the explanation of the application form. In our experience, filling out the application form can raise questions is our experience. We assist permit applicants with the application process. We are happy to share our expertise with you and help you out with the PSD2 application process.

Feel free to contact Blenheim on regulatory issues, law enforcement or supervisor policy.