Select a legislative/policy area

ID 1016. Scope and definitions
electronic money payment services Back

Relevant provisions
General question on Directive 2009/110/EC

Question
The directive enables an EMI to conduct "payment services not linked to issuing electronic money". It also added "issuing electronic money" to the list of activities subject to mutual recognition.

What is less clear, is the ambiguous concept of "electronic money payment services".
1) Can you confirm whether the EMD or the commission actually supports a definition of "electronic money payment services"
2) Specifically, if an EMI only issues electronic money (and does not undertake any other activities), when that EMI is passporting to another member state, should that passport notification specify services as

a. issuing electronic money only or
b. issuing electronic money and e-money related payment services.

i.e. does the passport notification have to sub-analyse issuing e-money into its component payment services?

Answer
1) Article 6(1) of the Directive 2009/110/EC (EMD) enumerates the activities that an electronic money institution can engage into, as well as implicitly the services that it can provide. 
"In addition to issuing electronic money, electronic money institutions shall be entitled to engage in any of the following activities:
(a) the provision of payment services listed in the Annex to Directive 2007/64/EC;
(b) the granting of credit related to payment services referred to in points 4, 5 or 7 of the Annex to Directive 2007/64/EC, where the conditions laid down in Article 16(3) and (5) of that Directive are met;
(c) the provision of operational services and closely related ancillary services in respect of the issuing of electronic money or to the provision of payment services referred to in point (a);
(d) the operation of payment systems as defined in point 6 of Article 4 of Directive 2007/64/EC and without prejudice to Article 28 of that Directive;
(e) business activities other than issuance of electronic money, having regard to the applicable Community and national law.".
 
2) Article 25 of Directive 2007/64/EC, by virtue of Article 3 of the  EMD, requires an e-money institution wishing to carry out payment services activities and/or issue electronic money in another Member State to communicate to the competent authority in its home Member State the electronic money issuance or payment services activities it intends to provide in the host Member State (where applicable).
In light of Article 24 of Directive 2007/64/EC, competent authorities agree that any changes to an existing notification made under Article 25 of Directive 2007/64/EC, communicated by the e-money institution to the competent authority of the home Member State (e.g. addition, reduction, cessation of activities, change of name, revocation of licence etc.) should be communicated between home and host competent authorities. This will help ensure that details of the services being provided by e-money institutions and through their agents across the EEA are maintained and kept up to date as far as is possible, in order to maximise the efficiency of the co-operation between competent authorities.


Date
Submitted on 21/02/2011