Module Application
Does the payment service provider comply with requirements relating to shareholding, initial
capital, own funds, and safeguarding of user funds?
Does the payment service provider follow the authorised procedure for providing the use of
payment services and execute payment transactions when a payment order is received?
Does the payment service provider implement measures to ensure data security and
effective risk management and have a robust digital operational resilience infrastructure?
Does the payment service provider carry out instant credit transfer transactions in
accordance with the specified requirements?
Does the payment service provider have a unified payment network across the EU?
Does the payment service provider that is a creditor provide standard information when
advertising a credit agreement or a mortgage agreement?
Does the payment service provider that is a credit institution offer basic payment accounts to
consumers on a non-discriminatory basis?
Does the payment service provider ensure that charges for cross-border payments in euro or
in the national currency of participating Member States are the same as for corresponding
domestic payments?
Does the payment service provider that is an electronic money institution follow general
prudential rules and maintain adequate capital and own funds?
Module Scope
The European Union (EU) is home to an advanced payment system landscape. Payment
Service Providers (PSPs) operating within the EU navigate a complex regulatory
environment influenced by individual Member State legislation and overarching EU
regulations and directives. The Payments module provides a detailed coverage of the EU
payment systems regime, focusing on the harmonisation efforts and core regulations that
shape the landscape.
Several directives and regulations govern the EU payment systems landscape. These
include:
Payment Services Directive 2 (PSD2): This directive governs the authorisation,
prudential requirements, execution of payments, and operational and security risk
management for PSPs.
Single Euro Payments Area (SEPA) Regulation: This regulation sets business and
technical requirements for PSPs providing credit transfers and direct debits in the
euro currency.
Module Scope and Application Document
The Clear Path to Compliance Payments 2
Digital Operational Resilience Act (DORA): This regulation imposes mandatory
information security requirements for financial institutions, including PSPs.
Consumer Credit Directive: This directive establishes rules on consumer credit
agreements to protect consumers and ensure transparency in credit markets.
Electronic Money Directive: This directive governs the issuance, redemption, and
supervision of electronic money within the EU.
Mortgage Credit Directive: This directive sets out requirements for mortgage credit
agreements, including assessment of the consumer’s ability to repay and provision of
standardised information.
Regulation on Cross-Border Payments: This regulation standardises charges for
cross-border payments within the EU and enhances transparency of currency
conversion costs.
EU regulations and directives do not create direct obligations for PSPs. Instead, Member
States develop consistent legislation to comply with these directives. Although specific
requirements may vary, the baseline standards from PSD2, SEPA, DORA, and other key
legislations apply across all 27 EU countries.
PSPs operating in the EU can use this framework to:
Confirm the adequacy of existing compliance measures and gauge the compliance
burden of proposed expansions.
Achieve full compliance at every step of entry into the European market.
Understand what must be done to meet regulatory obligations.