To enable customers and enterprises to make all types of transactions simply, promptly, and affordably, as well as to expand the market to potential entries like Payment Institutions, the Directive sought to remove legislative impediments to the requirement of payment systems in the EU. For all providers of remittance services, particularly banks or financial organizations, it created a set of specified guidelines.
Users of the new class of payment institutions can obtain the required support:
- Conducting monetary transactions (such as direct withdrawal, automated payment of money from one bank account into another, and credit card payments or with the usage of another equivalent instrument);
- production and purchase of payment appliances;
- money transactions;
- services involving foreign currency;
- Services that are offered alongside the primary services are known as supplemental ones.
The Directive of Payment Services is presently getting updated, and more activities should become permissible for Payment Institutions. Since the memorandum became valid to operate throughout the European Union, an enormous bunch of payment service providers have appeared in the marketplace. There were various suppliers in the financial sector before the new legislation went into force. These services are now ruled at the EU level under the PS Directive, and they are eligible to use a European identity document. There are many new participants in the European financial sector.
The next varieties of businesses have applied to become Payment Institutions in terms of business sectors:
- Money remittances
- Processing of payment transactions (standing instructions, bank cards, debit dealings, and cash withdrawals)
- Processing of credit cards
- Managing a bank account
- Releasing money-transfer instruments
- Gaining
- Services for Pay Commencement
- FE
