Transcript New regulatory initiatives from the European Commission?

Regulating EU mobile, internet and card
payments – What's next?
QED
Brussels
04.02.2015
Jean ALLIX
European Commission
DG Competition
Antitrust Payment Systems
The views expressed in this presentation are the speaker's personal views, and do not necessarily represent the official
position of the European Commission
1
I
N
T
E
R
N
A
L
M
A
R
K
E
T
2
The current regulatory ecosystem
 The Payments Services Directive 2007/64/EC
 The Electronic Money Directive 2009/110/EC
 Regulation EC/924/2009 on cross-border
payments in euros
 Regulation EU/260/2012 – SEPA end-date
06/07/2015
Legislative package announced on 24
July 2013
 Draft Regulation on interchange fees for card-based payment
transactions
 Rules on interchange fees and business arrangements for
payment card transactons
 And transactions based on those
 With 'two legs' within the EU
 Draft revised Payment Services Directive
 Modernise the current legal framework
 Contribute to the promotion of security and innovation in the
retail payments market
 Market access for new non-bank players
4
Payment legislation
Card based
payment
transaction
Regulation on
interchange
fees
Credit
transfer
Direct debit
Regulation on
SEPA end
date (euro
only)
Payment
services
In the
internal
market
Directive
(PSD)
5
Interchange Fee Regulation and PSD II
State of Play
Interchange Fee Regulation:
• Agreed 17 December, confirmed End January
• Translation and final check
• Publication (possibly April/May?)
PSD II:
• Trilogues start this week
• Completed by end June?
6
Internal
Market?
7
Interchange fees caps
Credits cards
0.3% per transaction
 Debit cards
 0.2% per
transaction
 Or
 If decided by
Member State,
weighted average
0.2%
8
Business rules to improve competition







Licensing: no territorial restrictions.
Split scheme processor
Technical interoperability (standards)
Co-badging
Choice of application (the wallet issue)
Honour all card rules (tying)
Transparency: consumer information
Future of payments:
Mobile payment (wallets)
10
What we want to avoid for mobiles
PSD1 & 2
Title II
• payment institutions
• access to market (TPPs)
• prudential rules
for authorisation
• improve competition
Title III
Title IV
• information requirements
• rights and obligations
• increased
transparency
• improve consumer
protection and choice
• promote consumer
confidence
• facilitate SEPA
• harmonisation
• legal certainty for
providers and users
• Security
Establish a harmonised legal framework for the development
of pan-European payment services and infrastructures
A single licence
Newcomers (TPPs):
Payment initiation services
Account information services
06/07/2015
What we want to avoid for
consumers
Why this
damned gold
card is not
working?
Card based transaction: a payment by card
without a piece of plastic
Strong Customer Authentication
Payment Services Directive trilogue






TPPs
Security: strong customer authentication
Scope
Supervision
Surcharges
Refund right
15
Questions?
[email protected]
+32.2.296.31.79
16