This report reviews how Directive 2007/64/EC on
payment services in the internal market (hereinafter: the
PSD) has been applied as required by its Article 87. It
covers the period 2009 2012. It also covers Regulation (EC) No 924/2009
on cross-border payments in the Community.
The objectives of the PSD are to establish at
Community level a modern and coherent legal framework for payment
services, whether or not the services are compatible with the
system resulting from the financial sector initiative for a single
euro payments area, which is neutral so as to ensure a level
playing field for all payment systems, in order to maintain
consumer choice, which should mean a considerable step forward in
terms of consumer cost, safety, and efficiency, as compared with
the present system.
Main conclusions:
- Fit for purpose: the
PSD is globally fit for purpose and any future possible changes
should follow an evolutionary rather than a revolutionary
approach;
- Some changes desirable: the analysis of the PSD and its impacts suggests that
a number of changes could be envisaged to the PSD to enhance its
effect, clarify a number of its aspects, provide a level playing
field and to take into account technological
developments.
- scope: in this regard,
the PSD only applies to payments where both end-providers are
located in the EEA but not, for example, to transactions to or from
third countries (so-called "one-leg transactions"). At the time of
its adoption, a number of payment (related) activities were
exempted from the scope of the PSD;
- level playing field: a
situation has arisen whereby payment services users do not enjoy
the protection of the PSD for increasingly large volume of
transactions, has given rise to uncertainties as to actual scope of
the Directive and created an uneven level playing field. The
flexibility offered by the PSD in enabling merchants to charge a
fee or give a rebate to steer the consumer towards the most
efficient payment means, combined with the option for Member States
to forbid or limit any such surcharging on their territory, has led
to extreme heterogeneity in the market. In order to enhance
consumer protection and to promote legal certainty, a further
harmonisation of refund rules regarding direct debits could be
considered to avoid the current European disparities in this
respect. A reduction of the scope of the simplified
regime for so-called small payment institutions
and few adjustment to the liability provisions could be envisaged
as well;
- technological business development: there also is a need to accommodate technological
business development. New players have emerged in the market (the
so-called third party payment service providers)
offering basically low cost payment solutions on the internet using
the customers' home online banking application, with their
agreement, and informing merchants that the money is on its way,
thereby facilitating online shopping. Some players also offer
consolidated information on different accounts of a payments
service user (account information services). Whilst
these new actors bring undeniable benefits for payments users in
general - merchants and consumers alike - and competition in the
market, a series of issues about security, access to information
on payment accounts or data privacy need to be addressed at EU
level, alongside their possible licensing and supervision as
payment institutions under the PSD.