Consider if you provide payment services

The revised Payment Services Directive (PSD2) came into effect from 13 January 2018.

These changes to the law mean that you may be providing payment services if you are:

  • an online marketplace
  • a business bringing sellers and customers together
  • a business providing booking services

Check whether this applies to your business and what steps to take.

It is an offence to provide payment services without the correct FCA authorisation or registration.

You may be affected: 

If your business receives customer money before passing it on to a seller

This includes receiving money into a bank account in your name. If so, you may be providing a payment service eg the transfer of money between parties (money remittance) or operating a payment account for customers. See our Perimeter Guidance for more information.

If you provide such services as a regular occupation or business activity

This may be the case even if the services are provided as part of a package with other services. See our Perimeter Guidance for more information.

You might be excluded from regulation if you:

  • are a commercial agent (you are authorised to negotiate or conclude the sale or purchase of goods or services on behalf of either a payer or payee in a payment transaction), or
  • offer payment instruments, eg a gift card that can be used only in a very limited way. See Limited Network Exclusion.

If you are in doubt, seek independent legal or compliance advice.