Brussels, 14/09/2006 (Agence Europe) - The committee on economic and monetary affairs has adopted, by unanimity minus one abstention, the report by Jean-Paul Gauzès (EPP-ED, France) on a proposed directive on payment services. The objective of this legislative initiative is to make cross-border payments as simple and inexpensive as national payments (see EUROPE 9080). The modifications made to the initial proposal by the Parliamentary committee relate particularly to its scope of application, entry conditions for new economic operators on this market and the lead time for payments. They aim to confer upon it "greater efficiency" and to "take account of the technical constraints of the industry, whilst preserving the objective of a reduction in costs to the benefit of the user, by developing fair competition", said Mr Gauzès in a press release. The plenary vote will take place in October, with a view to a definitive adoption of the directive at first reading, but this could be postponed to broker an agreement with the Council.
The MEPs take the view that the legislative proposal should apply only to payments made in the currencies of the Member States by payment service-providers established within the EU. The Commission proposed the inclusion of all transactions, irrespective of the currency used, involving service providers where at least one of them is situated in the EU. If, in principle, payment establishment activities are reserved for corporate bodies, the Member States will, in certain cases, be able to authorise physical persons to carry out these activities, as is already the case in the United Kingdom and in Poland.
The MEPs agree to the introduction onto the market of a new category of actors, payment establishments. This should go hand in hand with proposals to ensure consumer protection and avoid competition distortions with banks. For example, the Parliamentary committee is bringing in requirements in terms of capital for newcomers, by setting a bracket between 100,000 and 500,000 EUR. British Liberal member Sharon Bowles has stated in a press release that she was "disappointed" that the capital requirement had not been kept at a lower level, to avoid penalising small service providers to the benefit of large banks. New payment companies must, furthermore, protect the funds of their clients by dint of the "cantonment" of these funds, which cannot be used for other activities. Subject to the control of the national regulatory authority competent for checks on banks, they will be allowed to grant credit to their clients, but only when these credits are directly related to the use of the payment medium and are carried out on the basis of their own funds.
On the lead times for transactions, the Commission proposed the J+1 rule, referring to the day after the date on which the payment order was executed. The MEPs opted instead for a lead time set at J+2 from 2010. "This deadline, which is in fact very short, will allow payments requiring manual operations and/or monetary conservation to be dealt with correctly and leave sufficient time for anti money laundering checks to be carried out", said the rapporteur.
The European Consumers' Organisation (BEUC) is displeased with the vote of the Parliamentary committee. It feels that the deadline for the execution of payments is too long and that payment companies will continue to benefit from "too much" leeway to penalise consumers following the loss or theft of their payment cards. Furthermore, the association Eurocommerce feels that intensive lobbying on the part of the financial sector aims to weaken the directive, by making it harder for newcomers to enter the market and by reducing obligations on banks.