the payment services directive review: what matters & why? how will the psd review impact...
DESCRIPTION
Presentation of Osborne Clarke's Paul Anning at European Payments 2012 (4 December)TRANSCRIPT
European PaymentsThe Payment Services Directive Review – What matters and why?
Paul Anning, 4 December 2012
osborneclarke.com Private & Confidential
2
European payment services regulatory regime: Objectives
Regulated field of payment
services
Digital economyGreater
efficiency
Consumer protection
Enhanced competition
osborneclarke.com Private & Confidential
3
European payment services regulatory regime:PSD review – Key issues (December 2012)
Digital economy
Overlay services
Liability for unauthorised transactions and defective
execution
Access to payment systems
One-leg transactions
/all currencies
'Negative scope'matters
Mobile payments
Acquiring
Refund rights (back-dating)
Surcharging
Merging PI and EMI regimes
PSD 2
Passporting issues
osborneclarke.com Private & Confidential
4
PSD reviewScope, subject matter and definitions
• Extension to one-leg transactions/all currencies?
• Clarification of negative scope:
– commercial agents
– 'limited network'
– telecom exception
• Extension of PSD to a new payment service: overlay services
osborneclarke.com Private & Confidential
5
PSD reviewMarket access, structure and prudential rules
• Considering merger of PI and EMI classifications
• Reducing friction in functioning of passporting regime
• Examining access to payment systems
osborneclarke.com Private & Confidential
6
PSD reviewRights and obligations of PSUs and PSDs; Transparency
• Further harmonisation of surcharging rules
• Refinement of refund right (for payee-initiated transactions; back-dating of refunds)
• Reappraisal of balance between PSP and payer for liability for unauthorised payment transaction or non-execution/defective execution
osborneclarke.com Private & Confidential
7
PSD reviewIntegrated Market for Card, Mobile and Internet Payments
• Acquiring – clarity on application of PSD
• Mobile Payments – proposal expected Q2 2013
• Digital economy:
– security of payments
– e-invoicing to be the standard mode for public procurement
– convergence
osborneclarke.com Private & Confidential
8
PSD reviewWhat matters and why?
• Legislative objectives will keep driving change and evolution
• Fundamental to ensure PSD delivers:
– clarity and certainty
– flexibility for market and technology developments
– level-playing field
• Highlights: overlay services; passporting regime; and mobile payments
osborneclarke.com Private & Confidential
9
Further reading
• Payment Services Directivehttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32007L0064:EN:NOT
• Electronic Money Directivehttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32000L0046:EN:NOT
• European Commission’s Green Paper: Towards an integrated European market for card, internet and mobile paymentshttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011DC0941:EN:NOT
• ECB's Recommendations for the Security of Internet Paymentshttp://www.ecb.int/pub/pdf/other/recommendationsforthesecurityofinternetpaymentsen.pdf
• Single Market Act IIhttp://ec.europa.eu/internal_market/smact/docs/single-market-act2_en.pdf
• European Payments Council’s White Paper: Mobile Paymentshttp://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=564
Private & Confidentialosborneclarke.com
10
Contact details
Paul Anning is head of European law firm, Osborne Clarke's Financial Institutions Group and a specialist financial services lawyer. Paul has market leading experience and expertise in the payments industry where he has guided clients through new product development, regulatory change and transformational projects, such as the creation of the UK's Payments Council (which sets the strategy for UK payments), the merger creating VocaLink (the UK’s largest payments processor), the UK's first NFC enabled stored value mobile payment solution (QuickTap) and the acquisition of one of Europe's leading prepaid card issuers.Paul is well versed in the complexities of the payments industry's network arrangements. He also has a deep knowledge of legal and regulatory
developments affecting the payments industry, including key European developments such as SEPA, PSD and the 2EMD.Paul and the Osborne Clarke Payments team act for a range of clients from infrastructure providers and traditional credit institutions and GTS businesses through to electronic money issuers and corporates and retailers (including on corporate card and co-branded arrangements). Their Payments practice is recognized externally as top-tier ranking, with commentary such as - "Osborne Clarke is one of the leading practices working in the payments services sphere" and in July 2012 an award for "TMT Team of the Year 2012" at The Lawyer Awards for their work on Everything Everywhere and Barclaycard's QuickTap product.
Paul AnningPartner and head of Financial Institutions GroupT+44 (0) 20 7105 [email protected] "A fabulous, full-
service firm stuffed with bright and efficient people"
Chambers UK
"Osborne Clarke is one of the leading practices working in the payments services sphere"
Chambers UK