Payment Services Regulations

We have regulated payment services since 2009. By regulating this activity, we are implementing the Payment Services Directive.

What is a payment service?

Firms that facilitate or act as an intermediary in an electronic means of payment may be providing payment services. This includes (but is not limited to):

  • services covering all cash to be paid into or withdrawn from a payment account
  • all of the operations required for operating a payment account
  • direct debits, including one-off direct debits
  • payment transactions carried out through a payment card
  • credit transfers, including standing orders

Who the Payment Services Regulations (PSRs) affect

The PSRs affect firms providing payment services and their customers. These firms include:

  • banks
  • building societies
  • e-money issuers
  • money remitters
  • non-bank credit card issuers
  • non-bank merchant acquirers

Consult our Perimeter Guidance to see if you fall within the scope of these regulations.

Small payment institutions (SPI)

You can apply for registration as a small payment institution and be exempt from authorisation and prudential requirements if your firm:

  • has an average monthly payment value of no more than €3 million
  • does not intend to provide payment services on a cross-border basis

You must register with us if you wish to become registered as a small PI.

Payment Services Regulations: the aims

The PSRs aim to:

  • create a class of regulated firms known as payment institutions, which must be authorised or registered by us
  • enhance competition, efficiency and innovation in the European payments market by removing barriers to entry and ensuring fair market access
  • establish a set of rules on the information requirements, and the rights and obligations applicable to all payment service providers and end-users in the EU