Report from the Commission to the European Parliament and the Council on the application of Directive 2007/64/EC on payment services in the internal market and on Regulation (EC) No 924/2009 on cross-border payments in the Community

This report reviews how Directive 2007/64/EC on payment services in the internal market (hereinafter “the PSD”) has been applied as required by Art 87 from 2009 to 2012. Art 87 requires a report on a number of issues: Scope of the directive (especially low-value payment instruments and electronic money); One-leg transactions and transactions in all currencies; Authorisation requirements and barriers to market entry; Prudential requirements (initial capital / own funds / safeguarding); Granting of credit by payment institutions; Execution time and non-execution or defective execution. This report however does not limit its scope to these issues only.

The PSD review process was based on 2 dedicated external studies. The first study, “the legal study”, provided a legal conformity assessment on the transposition of the PSD in the 27 Member States. The second study, “the economic study”, analysed the economic impact of the PSD and related Regulation 924/2009 on cross border payments in euro in comparison to their original objectives. For the same purpose, input by Member States and the relevant market actors was gathered via the Commission's advisory committees for the retail payments policy.

This report describes the transposition of the PSD, considers its application and impacts, identifies main issues emerging from the application of the PSD and draws a number of conclusions.

See also:
- Proposal for a Directive of the European Parliament and of the Council on payment services in the internal market and amending Directives 2002/65/EC, 2013/36/EU and 2009/110/EC and repealing Directive 2007/64/EC

ESO: Background information: New rules on Payment Services for the benefit of consumers and retailers http://www.europeansources.info/record/press-release-new-rules-on-payment-services-for-the-benefit-of-consumers-and-retailers/

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