EPIF is delighted to share with you the joint statement co-signed with AFME and Insurance Europe regarding the cybersecurity certification scheme for cloud services (EUCS).

In this joint statement we welcome the improvements made in the latest version of the draft EUCS scheme. With the removal of most sovereignty requirements, the latest draft will introduce further transparency for cloud service users, while maintaining open market access and free provider choice. We encourage the European Cybersecurity Certification Group to reach a consensus regarding the removal of sovereignty requirements.

You can find below our joint statement which explains this issue in more detail.

EPIF is delighted to share with you the joint statement on duplication in the Cyber Resilience Act co-signed by EPIF together with the associations AFME, EBF, EPIF, ESBG and EACB regarding the duplication between the Cyber Resilience Act (CRA) and DORA.

With this statement the co-signatories aim to draw your attention to the the overlap between the CRA and DORA which could result in a highly complex regulatory landscape for financial services.

Therefore, the associations co-signing this statement support the amendments by the European Parliament (Recitals 4(a) and 14(b)) that emphasize the necessity for CRA’s compatibility with other Union rules, notably DORA:

• 4a: The horizontal nature of this Regulation means that it will have an impact on very different segments of the Union’s economy. It is therefore important that the specificities of each sector are taken into account and that the cybersecurity requirements laid down in this Regulation are proportional to the risks. The Commission should therefore issue guidelines which explain in a clear and detailed manner how to apply this Regulation.
• 14b: Regulation (EU) 2022/2554 of the European Parliament and of the Council establishes a number of requirements to ensure the security of network and information systems supporting the business processes of financial entities. The Commission should monitor the implementation of this Regulation in the financial sector, to ensure compatibility and to avoid overlaps for products with digital elements that may also be covered by Regulation.

You can find below the Joint Statement on duplication on the CRA.

EPIF is delighted to share with you the joint statement on EUCS co-signed by EPIF together with AFME, EBF, EPIF, ESBG and Insurance Europe regarding the cybersecurity certification scheme for cloud services (EUCS).

The ongoing process of developing a cybersecurity certification scheme for cloud services (EUCS) has been raising serious concerns amongst the EU financial services industry.

With this statement the co-signatories aim to draw attention to aspects of this process that have been raising such concerns. This includes the insertion of sovereignty requirements on the EUCS draft text and the lack of engagement with the industry during this process.

Therefore, the associations co-signing this statement consider that European Commission and ENISA should:

• Remove the sovereignty requirements from the EUCS candidate scheme and adopt an implementing act which focuses purely on technical requirements that will strengthen the European internal market, as existing EU policies set out in DORA, GDPR and NIS2 provide the best tools for tackling operational resilience and oversight of ICT critical third-party providers; and
• Actively engage with the industry during this process to ensure that the final scheme is adequate and fit for purpose.

Please find below the joint statement.

Please find below the Joint Statement by EPIF, together with the ETTPA, the European Fintech Association, the European Digital Finance Association and AEFI on the EU eIDAS Regulation.

The Joint Statement highlights the importance of keeping payments under the scope of the Regulation.

Digital identity should be able to substitute physical identity documents in any situation where such verification and authentication of a citizen or business is required. It would not be reasonable to inhibit digital innovation by excluding entire industries from the scope of the regulation, as suggested recently by some bank associations. Keeping payments in scope and developing such interoperability standards, will allow consumers to make instant payments using their smartphone in a frictionless standardised and non-proprietary manner across all EU countries. This will not only benefit consumers, businesses and fintechs, but it will also add to the EU’s continued wealth creation.

EPIF is delighted to share wit you our views on the Digital Operational Resilience Act (DORA).

EPIF is delighted to share with you its response to the Commission Consultation on the Digital Finance Strategy.

EPIF is delighted to share with you our response to the Commission Consultation on the White Paper on AI.

Please find below EPIF’s response to the Commission’s consultation on digital operational resilience framework for financial services .

EPIF is delighted to share with you our response to the Commission’s consulattion on an EU Frameowrk for Markets on Crypto-Assets.

Financial  technology  has  the  potential  to  democratise  financial  services  across  the  EU.  Consumers expect to be able to shop online, transfer money, and purchase financial services products online and cross-border as quickly and as easily as sending an email or a text message. With the right technical and regulatory pan-European framework, financial technology companies can provide consumers with the flexible, convenient and safe level of service that they now expect from any other industry.

EPIF is delighted to share with you its views on fraud under the PSR and its proposal for a more comprehensive fraud prevention approach.

Fraud is a societal risk that jeopardizes the safe functioning of the digital economy. To properly tackle fraud, it is necessary to implement a wide range of tools that allow all the actors in the fraud chain to have the appropriate means to act, both together and individually, based on where they sit in this chain. This includes payment service providers, telecom operators and operators of online platforms. These solutions should emphasize cross-sectoral collaboration, cooperation and education to empower consumers.

Given the ramifications fraud and scams can have for society, going well beyond the remit of payments or financial services, EPIF calls on the European Commission to set up a cross-sectoral task force to draft a holistic ‘consumer anti-fraud and scam strategy’. This would bring together DG FISMA, DG CONNECT, DG HOME and DG JUST as well as experts from all relevant sectors including the financial sector, the telecommunication sector, online platforms, civil society consumer groups and law enforcement agencies.

You can find our full position below.

EPIF is delighted to share its position paper on the recent proposals on payment services (PSD3/PSR).

EPIF very much welcomes these proposals, in particular the ambitious approach taken by the European Commission to move towards a Single Rulebook. This is an important step to further deepen the EU’s Single Market for payments and reduce divergences in national implementation that EPIF members have always supported.

This new Package brings many significant improvements to the current framework, levelling the playing field between the bank and non-bank payment sectors through a targeted amendment to the Settlement Finality Directive (SFD), allowing for safeguarding of accounts and reinforcing de-risking provisions. It also enhances the rules for fraud prevention data sharing. EPIF in particular welcomes the progress made in the European Commission’s proposal on Strong Customer Authentication (SCA). Furthermore, the proposal makes important advancements on Open Banking.

Notwithstanding, several provisions still cause concern and introduce frictions in the payments space. This relates to the proposals to merge the PSD2 and the e-money Directive (EMD2), the treatment of current exemptions to the scope, SCA and other provisions around surcharging, liability, refund rights and transparency.

Our full position on the PSD3/PSR can be found below.

EPIF is delighted to share with you its views and recommendations ahead of the expected proposal by the European Commission revising the PSD2.

EPIF members have always been supportive of the PSD2’s goals of being a maximum harmonisation Directive. With this in mind, our recommendations focus on the areas we believe warrant a closer and more urgent look during the review exercise by the European Commission. These relate to:

• Access to payment infrastructure;
• Scope of the PSD2;
• Authorisation, licensing regime and supervision;
• Fraud prevention and Strong Customer Authentication;
• Open Banking; and
• The interplay between the PSD2 and other legislation.

EPIF is delighted to share its response to the European Commission’s targeted consultation on the review of the revised Payment Service Directive (PSD2).

The payments landscape has changed in the last years, with the entry into force of the PSD2 and developments in technology and FinTech introducing many new players and new payment solutions into the payments market. The PSD2 has led to the emergence of new players and business models in the Single Market offering seamless payment solutions to merchants and customers. This has led to innovation and competition in the payments market. EPIF believes the PSD2 has been successful to some extend. However, more progress is still needed on SCA and certain outstanding issues hamper innovation, such as IBAN discrimination, long registration periods for agents and redirect authentication requirements.

EPIF is delighted to share with you its response to the EBA Consultation on the amendment to its technical standards on strong customer authentication and secure communication in relation to the 90-day exemption for account access.

EPIF welcomes the EBA initiative to reassess some of the practical issues around Strong Customer Authentication (SCA) in the context of account access for Open Banking purposes.

EPIF believes that the proposal moves in the right direction and agrees with the EBA that Article 10 has led to both undesirable implications for third-party providers, as well as a divergent practice in its application. Our experience of the 90-day renewal of SCA rule has proven cumbersome and has dissuaded customers from using AIS services on an ongoing basis. The new mandatory exemption would create a level playing field in Europe, which will be good for business (same rules across all European countries) and for customers (same services across all European countries).

EPIF is delighted to share with you its response to the EBA Consultation on the Guidelines on Limited Network Exclusions under PSD2.

EPIF welcomes the opportunity to reply to this consultation. We strongly support the limited network exclusion (LNE) and agree that there is a need for clearer guidance regarding the scope of the LNE. The wording of the LNE as drafted in PSD2 has, understandably, caused confusion across EU regulators and businesses, resulting in parties making legitimate but diverse interpretations of its scope The LNE under PSD2 creates an important distinction between regulated payment activities and activities that are rightly excluded from certain requirements. It is vital for regulators, the industry, firms and consumers that the rules continue to draw this distinction appropriately.

While we support some of the proposed guidelines, we believe that the EBA should reconsider its approach in relation to certain Guidelines to ensure (i) a level playing field across issuers that operate physical locations and those that operate online; (ii) legal certainty and consistent application of the guidelines across the EEA to promote harmonization while supporting innovation; (iii) appropriate customer protection.

We are delighted to share EPIF’s response to the EBA consultation on the Revised Guidelines on major incident reporting.

EPIF co-signed a joint industry letter that was sent to the EBA on the RTS on SCA and the use of CVV as a valid authentication factor.

This letter was co-signed by:

• European Payment Institutions Federation (EPIF)
• Ecommerce Europe
• Eurocommerce
• European eCommerce and Omni-channel Trade Association (EMOTA)
• Merchant Risk Council (MRC0
• Digital Europe

Please find below EPIF Q&A document that was submitted to the European Banking Authority asking for clarity on several PSD2 related issues.

EPIF has highly appreciated the constructive dialogue with the European Commission and the EBA during this process but nonetheless has some final remakrs on the revised draft. EPIF is of the view that card-based transactiobs should be exempt from the dynamic linking requirement. EPIF suggesting relacinx the requirements to keep the maximum transaction amount to EUR 50 and not introduce prescriptive thresholds.

EPIF generally agrees with the proposed Guidelines 1-6 but underlines the importance of the Home State Principle and its application to the complaints procedure for alleged infringements of the PSD2.

EPIFsupports the PSD2’s creation of a central EBA Register, which will serve as a one-stop-shop for consumers and businesses alike to access up-to-date information about the Payment Service Providers (PSPs) they interact with. From a Payment Institution’s (PI) perspective, EPIF is of the view that the Register should provide capabilities for real-time partner verifications through fast and directly accessible APIs.

EPIF would welcome confirmation as to whether agents who are not acting on behalf of a PI in providing payment services. The CCP should be able to manage country level reporting to the regulator but it is not necessary for the CCP to conduct its own additional offsite or onsite audits or investigations.

EPIF would welcome the EBA recommendations as to the form of the CCP, to avoid lack of harmonisation across Member States.

EPIF is pleased to have co-signed a letter together with 18 other associations on the draft RTS on SCA. The letter provides the high-level postion of major payments industry operators with regards to the draft RTS on SCA. The letter ackknowledges the need for a Transaction Risk Analysis (TRS), supports a result-oriented approach and encourages the Commission to host a multistakeholder workshop.

EPIF is glad to share its response to the EBA consultation on the draft Guidelines on the information to be provided for the authorisation as payment institutions and emoney institutions and for the registration as account information service providers.

EPIF is pleased to share its response to the EBA Guidelines on major incident reporting under the PSD2. These draft Guidelines set out the criteria, thresholds and methodology to be used by payment service providers in order to determine whether an operational or security incident should be considered as major and, therefore, be notified to the Competent Authorities.

EPIF is pleased to share its response to the EBA consultation on the Regulatory Technical Standards on strong customer authentication and secure communications under the PSD2. EPIF is supportive of initiatives that introduce more choice to innovation in the European payments sector and believes that we should adapt to customer needs and the rapid pace of change in the market. EPIF believes that Strong Authentication requirements should carefully balance security and user friendliness, taking into account payment service users’ desire for convenience. EPIF is strong supporter of the risk based approach. We believe the RTS should be less prescriptive and more business-model and technology neutral in order not to hamper innovation and the development of the EU Digital Single Market. Moreover, the RTS should be fully consistent with the provisions and spirit of the revised Payment Services Directive (PSD2) and its implied mandates given to the EBA.

EPIF does not agree on the requirement of undertakings and believe that the minimum monetary amount  should always cover the potential liabilities. EPIF does not agree on the indicators under the type of activity criteria should be calculated and believes that the size of activity indicator is exaggerated.

The European Payment Institutions Federation is pleased to share its responses to the EBA Consultation on the RTS on Strong Customer Authentication and Secure Communication under PSD2.

EPIF is pleased to share its position paper on the EBA Guidelines on PI Insurance  for PSPS’. There appears an over-reliance on insurance to underpin the new TPP market. This appears to be the assumed solution even in the title of the ‘Guidelines on Professional Indemnity (PI) insurance for PSPs’. This is unfortunate since there is no such market existing today. If this unavailability becomes a barrier to entry to small TPPs this would seem directly contrary to the intentions of PSD2 to encourage TPPs to flourish.

The European Payment Institutions Federation is pleased to share its responses to the EBA consultation on Regulatory Technical Standards on passporting under the PSD2. EPIF suggests that Host State competent authorities should provide reference to applicable main regulations and reporting requirements for Payment Insitutions using their passporting rights in the Host Country. EPIF strongly suggest no using the post which will introduce delays and risks where electonic means are quicker and safer.

EPIF welcomes the publication of the EBA’s Discussion Paper on strong authentication as part of the RTS for the revised Payment Services Directive (PSD2). We also welcome its focus on enhancing consumer protection, promoting innovation and improving the security of payment services across the European Union.

For this call for evidence EPIF gladly provides examples concerning the Payment Services Directive (PSD II), the Interchange Fee Regulation and the Consumer Credit Directive (CDD).

EPIF is glad to share its views on the key issues of the PSD2 as currently being discussed at Council level. The paper illustrated among others the scope, the use of agents, the revocation of consent recurring transactions, access to bank  services in home and host Member State for PIs, the passporting regime and others.

EPIF is pleased to share its Position Paper on Access to Bank Services.  This position paper identifies the various issues and concens of PIs in terms of accessing bank services.

EPIF welcomes the publication of the proposal for a Payment Services Directive 2 (PSD 2). EPIF is hereby identifying some key issues that need to be addressed in order to improve the current proposal.  This  includes,  amongst  other  topics,  the passporting regime, the use of agents, the access to bank services for payment institutions, safeguarding of merchant funds and surcharging.

EPIF is glad to share its views on the topic of third parties accessing payment accounts to effect payments on behalf of European consumers (also called Payment Initiation Services) as well as to make four recommendations in respect of Payment Initiation Services (“PIS”).

Thanks to their safety, convenience and economic efficiency, we expect PIS to bring significant benefits to European consumers and contribute to the integration of the European payments market. In order for this to happen, consumer interests need to be safe-guarded and it needs to be ensured that third-party providers and bank-sponsored providers of PIS compete on a level playing field.

EPIF, together with other EU Associations, continues to call on co-legislators to re-consider the proposed rules for exempting certain low-value, low-risk e-money products from the requirements under the AML Regulation.

Both consumers and retailers greatly benefit from the current e-money exemption under the 5th AML Directive which should thus be maintained in the AMLR.

In particular, we recommend co-legislators to:

➔ Support the e-money exemption in Article 15 (3) per the EP’s proposed text
➔ Remove the restriction to „a single Member State“
➔ Remove the reference to a “direct commercial agreement with a professional issuer”
➔ Support Article 22 (1) (c) in the EP’s proposed text

The full Joint Call for Action can be found below.

EPIF is happy to share with you its Press Release on the impact of the AML Regulation on low-value gift cards and e-money products.

The Head of the EPIF Secretariat, Nickolas Reinhardt, stated that “The proposal to remove the exemption is not necessary and disproportionate. There is a very low risk of such products being misused for illicit purposes. The regulatory regime governing the issuance of these products is already very strict and issuers comply with various statutory requirements. Today’s spending and loading limits are extremely low, with a limit of 50 euros for online transactions and 150 euros for offline transactions, and the issuers of such products carry out sophisticated measures to prevent any misuse.”

The full statement can be found below.

EPIF has co-signed a Joint Statement to keep the option for anonymous low risk, low value e-money products in the EU anti-money laundering Rulebook.

The retention of such exemption can be incorporated in EU Regulation in a compliant way and following a risk-based approach, without being in conflict with EU legislation and the FATF requirements.

You can read the full Joint Statement in the document below.

EPIF is delighted to share with you the Joint Industry One Pager that it has co-signed on the CDD exemption for low risk E-Money Products  (Article 12 AMLD) within the future AML/CTF Framework.

EPIF considers this to be an important exemption, which is to the great benefit of consumers and that plays an important role in order to maintain the attractiveness of these products.

The signatories of this position paper firmly advise and call on the co legislators to retain the exemption for low risk, low value e money products in the AML Regulation for the benefit of customers , proportionate data collection , financial inclusion and to support digitisation and innovative business models.

EPIF is delighted to share with you its response to the EBA Consultation on new  Guidelines on the use of remote customer onboarding solutions.

EPIF very much welcomes the Guidelines but points out that further clarity should be provided. The use of plain language throughout the Guidelines would help regulators and businesses understand what is expected.

EPIF is delighted to share with you its response to the Commission AML Package.

EPIF very much welcomes the Commission’s proposals as part of the AML package. We have been strong supporters of moving to greater harmonization in the EU Anti-Money Laundering (AML) framework and we very much welcome the fact that parts of the Directives have been turned into a maximum harmonization Regulation.

EPIF welcomes greater harmonisation on several areas such as:

• Reduce reporting burden by streamlining technology and the data elements, as well as standardizing the reporting framework. EPIF welcomes the clearer rules on how reportable transactions are to be identified. EPIF looks forward to the AMLA draft implementing technical standards specifying a common template for the reporting of suspicious transactions to be used as a uniform basis throughout the EU. Having a more effective functioning of the FIUs’ analytical activities and cooperation is key to ensure the efficiency of the system.
• Clarifications and additional details regarding CDD. EPIF also supports building and implementing harmonising CDD procedures and a move from paper-based Know-Your-Customer (KYC) to online and innovative on-boarding and KYC solutions building on e-ID are key for EPIF members.
• Provisions clarifying the conditions that apply to the processing of certain categories of personal data of a more sensitive nature by obliged entities. EPIF has been calling for clarifications to create legal certainty around the application of the GDPR.

EPIF is delighted to share with you its response to the EBA consultation on draft Guidelines on cooperation and information exchange between prudential supervisors, AML/CFT supervisors and financial intelligence units.

EPIF is delighted to share with you our contribution to the Financial Action Task Force (FATF) project to study and mitigate the unintended consequences resulting from the incorrect implementation of the FATF Standards, focusing on the issue of bank de-risking

EPIF fully supports the Financial Action Task Force (FATF) efforts to look into the unintended consequences resulting from incorrect implementation of the FATF standards.

In our response EPIF will focus on the issue of bank de-risking that many of our members are facing across Europe. While this is not only a European issue, as the representatives of the European Payment Institutions, we will focus our contribution and share our experiences in European markets.

We are delighted to share EPIF’s response to the EBA call for input on bank de-risking.

EPIF is delighted to share with you its response to the Commission consultation on an action plan for a comprehensive Union policy on preventing money laundering and terrorist financing.

EPIF is delighted to share with you its response to the EBA consultation on the revised guidelines on risk factors.

Please find below EPIF response to Public consultation on FATF draft guidance on digital identity.

EPIF members, and in particular our members representing the MVST sector, would like to express our appreciation to the FATF for seeking the industry’s comments on this important set of guidelines. When preparing its submission the EPIF membership carefully reviewed the separate draft response by Western Union to this consultation and has decided to lend its support to this paper.

We would therefore like to document that Western Union’s submission has the support of the wider EPIF membership and should also be read by the FATF as EPIF’s submission to this consultation. We have attached for your convenience the text submitted by Western Union. EPIF stands ready to answer any further questions you might have and looks forward to the continued close cooperation with the FATF Secretariat.

EPIF is pleased to share its response with the ESAs emphasising the need to ensure that the legislation in practice works also when non-bank PSPs are involved in the payment chain. EPIF is of the view that the following two principles must be made clear: 1) The bank where the Payer initiates a payment transaction needs to provide a sufficient amount of input/templates to allow it to obtain sufficient information about the Payee aso when non-bank PSSs act as intermediary PSPs or PSPs of the Payee. 2) Banks that take reciept of payments (intermediary PSPs) need to provide or make available to the holder of the account where the transfer is recieved the same information about the identity of the Payer that the banks have recieved from the Payer’s bank, so as to allow non-bank PSPs to act as PSP of the Payee.

EPIF welcomes the European Commission’s work to update the framework sanctioning criminal activity where non-cash means of payment fraud are concerned. By improving the effectiveness of prosecution of criminal activity where prevention has failed is, this initiative will foster trust and security in the online environment and contribute to the EU’s Digital Single Market.

EPIF is pleased to share its response to the Commission consultation on restrictions on payments in cash. EPIF believes that EU-wide action to restrict payments in cash is unnecessary at this time. Cash remains  the payment  method of choice for many people, due to its convenience, its portability and its universal acceptance.

EPIF is glad to share its response to the consultation on Central Contact Points. EPID agree with the princple of CCP but is of the view that it is crucial that the EBA provides guidance to Member States on the form of CCPs to avoid Member States to take on different approaches.

EPIF is pleased to share its position paper on the Commission;s proposal to amend the 4th AMLD. EPIF is supportive of the initiatives that introduces a more robust legal environment and measures to counter terrorist financing and money laundering. EPIF suggests putting together the different existing lists of high risk third countries to avoid contradictions among EU Member States

EPIF is glad to share its response to consultation on  ESAS’ Draft Guidelines on Risk Factors. EPIF believes that there should be a unified framework for a risk-based approach amd that the diversity of the payments industry needs to be takeni nto acocund when formulating an RBA.

EPIF is pleased to share its recent position paper on the 4th Anti-Money Laundering Directive. The paper is demonstrating EPIF’s views on the key issues of interest on the 4th Anti-Money Laundering Directive and the Funds Transfer Regulation at the current level of the negotiation process.

EPIF is glad to share its views on two main issues currently discussed at Council level with regards to the review of the 3rd Anti-Money Laundering Directive: i) the introduction of CDD requirements for transfer of funds exceeding 1,000 EUR and ii) the possible re-introduction of an optional exemption for electronic money products from CDD requirements if certain thresholds are observed.

EPIF welcomes the publication of proposals for the 4 th Anti-Money Laundering Directive (4AMLD). AML rules need to be calibrated to reflect the reality of PI’s operating models.

EPIF would like to take the opportunity to identify some key areas that EPIF believes the 4AMLD should seek  to  address  but  currently  does  not.  This  includes,  amongst  other  things,  the  legislative  method applied  (minimum  harmonisation  as  opposed  to  maximum  harmonization),  risk  based  approach, customer due diligence measures, approach towards non face to face (online) transactions and data protection issues.

EPIF welcomes that the European Supervisory Authorities (ESA) have recently started to provide specific guidance to the financial industry regarding the supervisory, passporting and reporting regime applicable to Payment Institutions (PI) and their agent network. The new supervisory protocol (the ‘Protocol’) provides helpful clarifications, in particular from  an  Anti-Money  Laundering  and  Counter-Terrorism Financing  (AML/CFT)  perspective.  On  the  other  hand,  the Protocol contains various proposals which are a matter of concern to EPIF due to their unnecessary restrictive nature and potential severe impact on the business models of non-bank remittance service providers in Europe.

The European Payment Institutions Federation (EPIF) welcomes and encourages the private stakeholder consultation that is currently taking place concerning a review of the 3rd Anti-Money Laundering (AML) Directive.

Payment Institutions’ (PI) compliance with anti-money laundering and counter terrorist financing obligations is a prerequisite for their authorisation under the Payment Services Directive (PSD). The current anti-money laundering framework was, however, established prior to the opening of the payment institutions market and subsequently is arguably not catered to the needs of their various business models.

Commission Staff Working Paper on AML Supervision Of, and Reporting By, Payment Institutions in Various Cross-Border Situations

EPIF is delighted to share with you its contributions to the FSB consultation under the G20 Roadmap on regulatory and supervisory alignment.

EPIF is a very strong supporter of the G20 Roadmap on Cross-Border Payments and appreciates the opportunity to respond to this consultation. Regulation and compliance have emerged as one of the largest cost elements for the industry. These often-justified costs are ultimately borne by the customer. Streamlining regulation, advancing outcome- based and risk-based solutions to regulation and supervision, as well as the support for the adoption of new technologies will all contribute to reducing costs and improving the efficiency and seamlessness of the customer’s payment experience. This makes it easier for new entrants to enter the market, enhancing choice and competition for the customer. EPIF therefore very much supports this FSB initiative and stands ready to assist this effort in any way possible.

The complete EPIF contributions to the consultation report can be found below.

We would like to thank the European Commission for the opportunity of commenting on the Public  consultation  on  the  operations  of  the  European  Supervisory  Authorities. EPIF would hope that  the  ESA  review  will  provide  the  opportunity  to  implement  the  following  three suggestions:

•  The  EBA  Regulation  should  enshrine  binding  wording  giving  the  EBA  a  clear mandate  to  promote  supervisory  convergence  between  the  national  competent authorities  responsible  for  overseeing  payment  institutions  and  to  coordinate  policy issues  between  ‘home’  and  ‘host’  state  supervisors.  If  appropriate,  this  should  also include  the  continued  ability  to  adopt  Technical  Regulatory  Standards,  develop guidance or oversee a mediation mechanism;
• In  line  with  other  sectors  and  activities  falling  under  the  remit  of  the  EBA  and  the other  respective  European  Supervisory  Authorities,  the  EBA  should  convene  a Stakeholder Group representing the payment institution sector. This Group should be consulted on all aspects of the EBA’s work in relation to payments, including its work carried out as part of the Joint Committee.
• Finally, appropriate resources should be made available to the EBA to carry out its above functions effectively.

EPIF is delighted to share with you a position paper on the Interchange Fee Regulation (IFR) review that was prepared in response to the Commission’s Survey on the effects of the Interchange Fee Regulation.

EPIF welcomes the publication of the EBA’s Consultation Paper on Draft Regulatory Standards on separation of payment card schemes and processing entities: a common feature of our membership is a dependence upon fair access to domestic and international payment schemes/networks; domestic interbank settlement systems and bank accounts. Therefore we have a special interest in the proposed split of schemes’ branding and processing activities.

The European Payment Institutions Federation is pleased to share its views on the draft Interchange Fees Regulation. In its paper, EPIF articulates how a number of the central proposals in the draft Regulation would impact small market players and what this would mean for competition and consumer choice in the payments sector.

EPIF is delighted to share with you its contributions to the FSB consultation under the G20 Roadmap on aligning data frameworks.

EPIF very much supports the efforts by the FSB to further promote the alignment and interoperability of data frameworks across jurisdictions and agrees with the overall assessment that the lack of interoperability of data frameworks creates frictions in cross-border payments.

The complete EPIF contributions to the consultation report can be found below.

EPIF is delighted to share its response to the European Commission targeted consultation on a open finance framework and data sharing in the financial sector.

EPIF considers that primarily Open Finance has brought more payment solutions and more options available. Notwithstanding, often provisions are not phrased in a technology-agnostic manner and can be overly prescriptive, which hampers innovation and does not allow for the entrance of new players or the development of new solutions.

EPIF calls therefore for the development of more future proof and proportionate provisions.

EPIF co-signed a response together with Ecommerce Europe, Merchant Risk Council and Payments Europe to the EDPB consultation on Recommendations on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data.

EPIF is delighted to share with you its position with regard to the Commission’s European Data Strategy

EPIF is pleased to share its response to the Article 29 Working Party Guidelines on Data Protection Impact Assessment (DPIA). For EPIF, the central question is what ‘high risk’ means to the regulators and to companies. Companies need legal certainty of how the rules will be applied.

The European Payment Institutions Federation is pleased to share its responses to the EBA discussion paper on innovative uses of consumer data by financial institutions.

EPIF is pleased to share its position paper on Safe Harbour 2.0. In the context of the recent ruling of the CJEU in the Max Schrems case and the discourse which has surrounded it, EPIF would like to take the opportunity to highlight the importance of the Safe Harbour Agreement for the functioning of modern digital economies and the impact on EU and US businesses alike. Therefore, EPIF calls on the negotiators to conclude by the end of January 2016 deadline to avoid creating unintended barriers to growth, innovation and global engagement.

EPIF  welcomes  the  European  Commission’s  proposal  for  greater  harmonisation  of  the  EU data protection regime within the internal market with regard to the processing of EU personal data. With this position paper, EPIF seeks to address the concerns it has identified in the draft Regulation.

A number of provisions lead in their current form to legal uncertainty as they seem to be in conflict  with  the  requirements  under  applicable  Anti-Money  Laundering  and  Counter-Terrorism Financing  rules  (AML/CFT). Also,  some  provisions  significantly  increase  of  costs  and bureaucracy  for  companies.

The payments landscape has undergone significant changes in the last decades. The introduction of the Payment Services Directive in 2007 and the E-Money Directive of 2009 has led to the emergence of non-bank payment service providers (non-bank PSPs) delivering innovative, convenient, fast and secure payment options for customers. It has resulted in increased competition in the payment market which, in turn, allowed customers to benefit from more choice and cheaper payment solutions.

Here are EPIF’s reflections on how the European payments market is evolving and a number of Recommendations for further policy actions. These are aimed at increasing the competition, innovation, safety and reach of European non-bank payment solutions.

EPIF is delighted to share with you its contributions to the FSB consultation under the G20 Roadmap on regulatory and supervisory alignment.

EPIF is a very strong supporter of the G20 Roadmap on Cross-Border Payments and appreciates the opportunity to respond to this consultation. Regulation and compliance have emerged as one of the largest cost elements for the industry. These often-justified costs are ultimately borne by the customer. Streamlining regulation, advancing outcome- based and risk-based solutions to regulation and supervision, as well as the support for the adoption of new technologies will all contribute to reducing costs and improving the efficiency and seamlessness of the customer’s payment experience. This makes it easier for new entrants to enter the market, enhancing choice and competition for the customer. EPIF therefore very much supports this FSB initiative and stands ready to assist this effort in any way possible.

The complete EPIF contributions to the consultation report can be found below.

EPIF is delighted to share with you its contributions to the FSB consultation under the G20 Roadmap on aligning data frameworks.

EPIF very much supports the efforts by the FSB to further promote the alignment and interoperability of data frameworks across jurisdictions and agrees with the overall assessment that the lack of interoperability of data frameworks creates frictions in cross-border payments.

The complete EPIF contributions to the consultation report can be found below.

European payment service providers (PSPs) are committed to combating payment fraud and enhancing transaction security across Europe.

EPIF is delighted to share with you its views on the subjective approach to the authorization of payment transactions and the current concerns of the industry with this approach, notably in terms of the increase dispute risks, the operation challenges and impact on security protocols.

With this in mind, EPIF proposes a three-step recommendation:

• Maintain objective authorization criteria;
• Revert the burden of proof post-SCA; and
• Standardize the definitions of gross negligence.

Our more detailed views are further explained in the statement below.

EPIF is delighted to share with you its views on fraud under the PSR and its proposal for a more comprehensive fraud prevention approach.

Fraud is a societal risk that jeopardizes the safe functioning of the digital economy. To properly tackle fraud, it is necessary to implement a wide range of tools that allow all the actors in the fraud chain to have the appropriate means to act, both together and individually, based on where they sit in this chain. This includes payment service providers, telecom operators and operators of online platforms. These solutions should emphasize cross-sectoral collaboration, cooperation and education to empower consumers.

Given the ramifications fraud and scams can have for society, going well beyond the remit of payments or financial services, EPIF calls on the European Commission to set up a cross-sectoral task force to draft a holistic ‘consumer anti-fraud and scam strategy’. This would bring together DG FISMA, DG CONNECT, DG HOME and DG JUST as well as experts from all relevant sectors including the financial sector, the telecommunication sector, online platforms, civil society consumer groups and law enforcement agencies.

You can find our full position below.

EPIF is delighted to share with you the joint statement co-signed with other industry representatives to highlight a common concern with the treatment of merchant initiated transactions (MITs) within the proposal for a payments services regulation (PSR).

The new proposal extends the unconditional refund rights under Article 62(1) that exists for direct debits to all other MIT transactions. This implies that payers would be able to request a “no questions asked” refund from payment service providers (PSPs) within eight weeks of any MIT.

We would encourage co-legislators to consider removing this obligation for unconditional refund rights for MITs, with the exception of direct debits.

You can find below our joint industry letter which explains this issue in more detail.

EPIF is delighted to share with you its position paper on the proposal on the legal tender of euro banknotes and coins.

EPIF very much welcomes the European Commission’s double objective on the proposal to promote the acceptance and the access to euro banknotes and coins. We see cash availability and acceptance as a crucial element for financial inclusion. For EPIF, cash and digitalized means of payment are complementary to one another rather than mutually exclusive.

While we overall welcome this new proposal, we see merit in having further clarifications and improvements in a few elements of the proposal:

• The exemptions to the mandatory acceptance at face value leave scope for interpretation. EPIF would therefore welcome further clarity on what these exemptions entail. EPIF would also see merit in the clarification on the interplay between the exemptions of this proposal and the Digital Euro proposal.
• While legal certainty regarding the mandatory acceptance of cash must be protected, we welcome the possibility to reassess the impacts of mandatory acceptance to ensure proportionality in certain regions and/or for certain players.
• EPIF welcomes that the proposal envisages Member States to take “remedial measures” for the mandatory acceptance to cash. However, more clarity on which actions Member States can take in these cases would be welcomed.
• For certain payment service providers and merchants, imposing a mandatory acceptance of both cash and the Digital Euro might be disproportionate. EPIF therefore calls for a further consideration of the exemptions allowed to mandatory acceptance.

Our detailed views on this proposal can be found in the paper below.

EPIF is delighted to share with you its position paper on the proposal establishing the digital euro.

EPIF has been an active stakeholder in the various workstreams of the Euro Retail Payments Board (ERPB), including the Rulebook Development Group. We very much welcome the ECB’s work to involve the industry in this important exercise of exploring a Digital Euro for Europe. We look forward to continuing to collaborate with both legislators and the ECB in order to ensure that the digital euro brings as much value as possible to citizens, businesses and public authorities.

EPIF welcomes many provisions in the proposal that bring further clarity to market participants, notably in terms of the legal certainty on the issuance and issuance liability, the possibility for citizens to hold multiple wallets and the alignment with the future rules of the Payment Services Regulation (PSR) for digital euro payment transactions. However, some concerns remain with the draft Regulation, including on the compensation rules, mandatory acceptance and respective exemptions and the front-end services to be developed by the ECB.

Our detailed views on the digital euro proposal can be found in the paper below.

EPIF is delighted to share its position paper on the recent proposals on payment services (PSD3/PSR).

EPIF very much welcomes these proposals, in particular the ambitious approach taken by the European Commission to move towards a Single Rulebook. This is an important step to further deepen the EU’s Single Market for payments and reduce divergences in national implementation that EPIF members have always supported.

This new Package brings many significant improvements to the current framework, levelling the playing field between the bank and non-bank payment sectors through a targeted amendment to the Settlement Finality Directive (SFD), allowing for safeguarding of accounts and reinforcing de-risking provisions. It also enhances the rules for fraud prevention data sharing. EPIF in particular welcomes the progress made in the European Commission’s proposal on Strong Customer Authentication (SCA). Furthermore, the proposal makes important advancements on Open Banking.

Notwithstanding, several provisions still cause concern and introduce frictions in the payments space. This relates to the proposals to merge the PSD2 and the e-money Directive (EMD2), the treatment of current exemptions to the scope, SCA and other provisions around surcharging, liability, refund rights and transparency.

Our full position on the PSD3/PSR can be found below.

EPIF is delighted to share with you its views and recommendations ahead of the expected proposal by the European Commission revising the PSD2.

EPIF members have always been supportive of the PSD2’s goals of being a maximum harmonisation Directive. With this in mind, our recommendations focus on the areas we believe warrant a closer and more urgent look during the review exercise by the European Commission. These relate to:

• Access to payment infrastructure;
• Scope of the PSD2;
• Authorisation, licensing regime and supervision;
• Fraud prevention and Strong Customer Authentication;
• Open Banking; and
• The interplay between the PSD2 and other legislation.

EPIF is delighted to share with you its position on the ongoing Digital Euro project. As an active stakeholder in the various workstreams of the Euro Retail Payments Board (ERPB), including the Rulebook Development Group, EPIF members are closely following the developments.

At a high-level, EPIF would  strongly discourage any rushed procedures in the Digital Euro project that could lead to a lock-in of specific design elements which would create unintended consequences for the European Single Market as a whole. We also strongly call for an inclusive approach to the design, which accounts for the participation of different payment service providers (PSPs).

Specifically on the design options, you can find more in our position paper about:

• The holding limits & the limits to one-account per citizens;
• Legal tender;
• AML & privacy considerations;
• Distribution, intermediaries & compensation.

EPIF is delighted to share with you its position on the Settlement Finality Directive.

Adopted in 1998, the SFD guarantees that transfer orders within the European Union which enter the intra-bank payment system of central banks or are used for clearing and settlement of securities are legally settled. Under the current settlement arrangements for SCT Inst, EPIF members can only be indirect members of the TIPS ECB clearing arrangements. This puts the non-bank payment sector at a competitive disadvantage. Access to TIPS rests on our members having access to the system via their own banking relationships.

EPIF members have always supported an amendment to the SFD to extend direct access to the non-bank payment sector. With the evolution of the payments market and the objectives of the European Union with the proposals mandating instant credit transfers and the possibility to introduce a Digital Euro, this is becoming increasingly urgent.

In light of the above, EPIF strongly calls for payment and e-money institutions to be added to the list of eligible system participants under the SFD. This would ensure a level playing field and provide legal certainty in a cross-border context.

You can read our full position below.

EPIF welcomes the proposal by the European Commission on instant credit transfers in euros. This proposal is an essential element of the EU’s Retail Payments Strategy and EPIF members have always supported the efforts by the European Commission to foster pan-European initiatives. As a member of the European Payments Council (EPC), EPIF has actively participated in the development of the Scheme Rules for instant payments in the EU and through its members contributed to the growing availability and acceptance of instant payments across the Union even without this new legislation in place.

Payment Institutions (PIs) and E-Money Institutions (EMIs) can play an important role in delivering new innovative instant payment services that would further enhance competition in the market, and in fact some do so already on a voluntary basis. PIs and EMIs would of course look forward to working with regulators on appropriate measures adapted to the roles and responsibilities of the stakeholders involved.

EPIF continues to advocate in favor of an amendment to the Settlement Finality Directive (SFD)1 which would open the way for direct access by PIs and EMIs to settlement systems. In such cases, regulation should be tailored with consumer interests in mind, and be designed to achieve outcomes which protects their interests as well as the integrity of the wider ecosystem.

You can read more on the EPIF position in the paper below.

EPIF welcomes the proposal by the European Commission on instant credit transfers in euros. This proposal is an essential element of the EU’s Retail Payments Strategy and EPIF members have always supported the efforts by the European Commission to foster pan-European initiatives.

New initiatives based on instant payments will increase competition in the Single Market and drive innovation bringing Europe to the forefront of payments innovation. We believe that mandatory requirement for the provision of instant payment services will speed-up the full up-take of instant payments, delivering value for both consumers and European businesses. We welcome in particular the balanced approach taken by the European Commission towards fraud prevention and sanction screening. This balance approach will guarantee the delivery of instant payment services by in scope entities without compromising the security and protection of consumers.

We look forward to continuing to engage with the European Commission and co-legislators on this important file.

You can find our full communication below.

EPIF is delighted to share its response to the European Commission targeted consultation on a open finance framework and data sharing in the financial sector.

EPIF considers that primarily Open Finance has brought more payment solutions and more options available. Notwithstanding, often provisions are not phrased in a technology-agnostic manner and can be overly prescriptive, which hampers innovation and does not allow for the entrance of new players or the development of new solutions.

EPIF calls therefore for the development of more future proof and proportionate provisions.

EPIF is delighted to share its response to the European Commission’s targeted consultation on the review of the revised Payment Service Directive (PSD2).

The payments landscape has changed in the last years, with the entry into force of the PSD2 and developments in technology and FinTech introducing many new players and new payment solutions into the payments market. The PSD2 has led to the emergence of new players and business models in the Single Market offering seamless payment solutions to merchants and customers. This has led to innovation and competition in the payments market. EPIF believes the PSD2 has been successful to some extend. However, more progress is still needed on SCA and certain outstanding issues hamper innovation, such as IBAN discrimination, long registration periods for agents and redirect authentication requirements.

Given the ongoing investigation by the European Central Bank on a possible Digital Euro, EPIF is delighted to share its written feedback to the first European Retail Payments Board Digital Euro Focus Session with the non-bank payment sector.

The first and foremost priority is to know the design of the Digital Euro, on which the success and attractiveness of most of the use cases will be dependent on. So as to facilitate such a gradual and generic approach based on market demand, EPIF recognises the need for the Digital Euro to provide legal certainty by being recognised as Legal Tender but stresses that this does not need to go hand in hand with immediate mandatory acceptance by all parties and at the same time.

EPIF is delighted to share with you its response to the Commission targeted consultation on the Digital Euro.

EPIF fully supports the ECB task of to promote the smooth operation of payment systems and we agree that the safety and efficiency of the payment system is essential for a stable and well-functioning financial system and contributes to confidence in the currency. EPIF agrees with the ECB that while cash is still the dominant means of payment and should remain an option for consumers, new technologies and the increasing demand for immediacy from consumers are changing the way European citizens pay and the role of fast electronic payments is expanding.

EPIF is delighted to share with you its response to the EBA Consultation on the amendment to its technical standards on strong customer authentication and secure communication in relation to the 90-day exemption for account access.

EPIF welcomes the EBA initiative to reassess some of the practical issues around Strong Customer Authentication (SCA) in the context of account access for Open Banking purposes.

EPIF believes that the proposal moves in the right direction and agrees with the EBA that Article 10 has led to both undesirable implications for third-party providers, as well as a divergent practice in its application. Our experience of the 90-day renewal of SCA rule has proven cumbersome and has dissuaded customers from using AIS services on an ongoing basis. The new mandatory exemption would create a level playing field in Europe, which will be good for business (same rules across all European countries) and for customers (same services across all European countries).

EPIF is delighted to share with you its response to the EBA Consultation on the Guidelines on Limited Network Exclusions under PSD2.

EPIF welcomes the opportunity to reply to this consultation. We strongly support the limited network exclusion (LNE) and agree that there is a need for clearer guidance regarding the scope of the LNE. The wording of the LNE as drafted in PSD2 has, understandably, caused confusion across EU regulators and businesses, resulting in parties making legitimate but diverse interpretations of its scope The LNE under PSD2 creates an important distinction between regulated payment activities and activities that are rightly excluded from certain requirements. It is vital for regulators, the industry, firms and consumers that the rules continue to draw this distinction appropriately.

While we support some of the proposed guidelines, we believe that the EBA should reconsider its approach in relation to certain Guidelines to ensure (i) a level playing field across issuers that operate physical locations and those that operate online; (ii) legal certainty and consistent application of the guidelines across the EEA to promote harmonization while supporting innovation; (iii) appropriate customer protection.

EPIF is delighted to share with you our response to the Commission consultation on Instant Payments.

We agree with the Commission’s overall objective to foster pan-European market initiatives based on instant payments, which would ensure that anyone holding a payment account in the EU could be able to receive and send an instant credit transfer from and to any other payment account in the EU. EPIF fully supports the initiatives by the EU towards instant payments and we believe that the design of any such an initiative should consider all possible barriers to instant payments.

EPIF membership would support a non-legislative option, exploring possibilities of actively promoting the voluntary participation of PSPs in relevant standardisation processes or schemes, awareness raising campaigns addressed to payments services users such as consumers and merchants, setting up a structured dialogue with national payments communities to coordinate national plans for promoting the uptake of instant payments or potentially addressing a Commission Recommendation to Member States.

We are delighted to share with you EPIF’s response to the European Commission public consultation on the Settlement Finality Directive and the Financial Collateral Directive reviews.

EPIF very much welcomes the European Commission’s announcement in its Retail Payment Strategy that it intends as part of the SFD review to extend the scope of the Settlement Finality Directive to include e-money and payment institutions, subject to appropriate supervision and risk mitigation.

EPIF members would like to see the Settlement Finality Directive amended in order to allow its members to be added to the list of eligible participants to ensure a level playing field and provide legal certainty in a cross-border context.

EPIF responded to the Commission Inception Impact Assessment on Instant Payments.

We very much welcome the opportunity to provide our views to the Commission Inception Impact Assessment on Instant Payments. We would like to take this opportunity to share with you some general comments that our members have on this issue. We agree with the Commission’s overall objective to foster pan-European market initiatives based on instant payments, which would ensure that anyone holding a payment account in the EU could be able to receive and send an instant credit transfer from and to any other payment account in the EU. Please find below our positon paper.

Please find below a letter expressing our views on the draft Council Conclusions on the Commission’s Retail Payments Strategy (RPS).

EPIF very much welcomes that the Finance Ministers are recognising the political importance of retail payments in Europe and with the attached letter we would like to share with you some considerations on some of the key points of the draft Council Conclusions on the Commission Retail Payments Strategy.

EPIF will, over the coming months, carry out an assessment on the PSD2 and its possible review and will share the analysis with you.

EPIF is delighted to share with you our views on the issuance of a central bank digital currency (CBDC).

Please find below EPIF’s response to the Commission’s Consultation on the Retail Payments Strategy

EPIF members have prepared this paper to outline their views, expectations and recommendations for the future of European payments. For EPIF, the future payments landscape in Europe would benefit from measures under the four following themes:
1. Implementation of the PSD2
2. Harmonisation in the implementation of the AML regime
3. Interoperable e-ID
4. Amending the Settlement Finality Directive

EPIF is delighted to share wit you its position on the Commission’s proposal on Cross-Border Payment Fees and Currency Conversion.

Whilst EPIF agrees with the objective of the legislative proposal there are a number of areas where we provide feedback which are detailed in the position paper.

EPIF is glad to share its high-level views on the review of the PSD and the follow-up to the Green Paper on payment  innovation.  EPIF  is  addressing  below  several  issues  of  concern  resulting  from  both instruments.

EPIF is delighted to share with you its joint paper with AFME, ISDA and FIA on the Corporate Sustainability Due Diligence.

The paper highlights the serious challenges faced by financial institutions if the obligations are applied beyond their upstream supply chain to their relationships with corporate clients or trading counterparties in their downstream value chain. We have significant concerns with proposals to extend the scope of downstream financial services that would be included in the scope of the Directive. We strongly propose that any inclusion of downstream business relationships should be focused on the provision of financing where the inclusion of the services within the legislation is expected to have the greatest impact on safeguarding human rights and the environment.

We also note that Financial Institutions provide many services that can be affected very differently. In particular, payment services involve very frequent, short-term and numerous transactions and implementing a process of due diligence for each operation would result in an overly burdensome activity for financial institutions, not balanced by specific advantages for the purpose of this Directive, due to the short period of time between one operation and the next.

More details can be found in the paper below.

EPIF is delighted to share with you the joint statement on the due diligence proposal (CS3D).

The European Commission’s efforts on an EU due diligence framework are very much supported but need a sense of realism, proportionality and workability. This joint statement brings together a number of recommendations and concerns shared by the business community to enhance the benefits of corporate sustainability due diligence proposal.

Given the ongoing investigation by the European Central Bank on a possible Digital Euro, EPIF is delighted to share its written feedback to the first European Retail Payments Board Digital Euro Focus Session with the non-bank payment sector.

The first and foremost priority is to know the design of the Digital Euro, on which the success and attractiveness of most of the use cases will be dependent on. So as to facilitate such a gradual and generic approach based on market demand, EPIF recognises the need for the Digital Euro to provide legal certainty by being recognised as Legal Tender but stresses that this does not need to go hand in hand with immediate mandatory acceptance by all parties and at the same time.

EPIF is delighted to share with you a letter that was sent to Financial Services Attaches expressing our views on the European Commission’s proposal for ICT operational resilience in the financial services sector.

While our members believe that DORA is seen as a good initiative to streamline the ICT operational resilience requirements across the entire sector, the PSD2 already includes such tailored requirements for the non-bank payment sector. These requirements are intrinsically linked to other provisions in the PSD2 related to secure communications and access to customers’ accounts for the purpose of payment initiation and account information services. EPIF therefore expresses some concern that compliance with DORA will duplicate the existing provisions and inadvertently create new barriers for payment institutions to access client information. This would run counter to the EU’s wider objective of advancing its goals of data sharing and open finance.  Please find attached the letter with more detailed comments.

Please find below EPIF’s response to the Commission’s consultation on digital operational resilience framework for financial services .

EPIF is glad to share its response to the consultation on the Green Paper on Retail Financial Services. EPIF strongly supports a single market in payments although the diverse business models of payment institutions needs to be taken into account also from a regualtory perspective.