Why should payment institutions be allowed to grant credit?
While the Payments Services Directive is not about regulating cross-border credit, there are some existing payment products, such as credit cards which are used for payments and which typically allow customers to repay over an extended period. Consequently, payment institutions should be allowed to grant credit in accordance with the rules laid down by the Payments Services Directive. Under the Directive, any credit provided by a payment institution has to be provided from the payment institution’s own funds or monies that it has raised in capital markets, not from the funds received or held for the purpose of execution a payment transaction. National supervisory authorities must also be satisfied that the own funds of the payment institution are appropriate to the overall amount of credit provided.
