Money transfer companies facing threat from EU

HM Treasury (UK Finance Ministry) launched a consultation on the Payment Services Directive, 3 July 2006. Once agreed the directive will allow UK payment providers, such as credit card issuers, to significantly expand their markets by offering their services across the EU. The change will also offer benefits to consumers by increasing competition in the market leading to lower prices and a wider choice of services.

However, article suggests that some small money transfer companies, which allow migrants to send money home to their families, could go out of business under new European rules unless the UK can gain a partial exemption.

The Directive aims to deliver an EU internal market

United Kingdom: HM Treasury: Press Release, No.48, 2006 (3.7.06): Ed Balls launches consultation on Payment Services Directive http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2006/Press_48_06.cfm

United Kingdom: HM Treasury: Consultation Document: The Payment Services Directive: a consultation document, July 2006 http://www.hm-treasury.gov.uk/media/33F/98/payments_condoc030706.pdf

European Commission: DG Internal Market and Services: Free movement of services: Financial Services: Payment services: New legal framework http://ec.europa.eu/internal_market/payments/framework/index_en.htm

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