Payment institution

Roles that need it

• Compliance Officer
• Regulatory Change Analyst
• Payments Partnerships Manager (Acquiring & Gateways)
• Legal Counsel
• Regulatory Consultant (Banking)

Skills it belongs to

• Payments and cards products (schemes, chargebacks, PSD2, open banking)
• Regulatory change impact assessment

Related concepts

• Electronic money (e-money)Electronic money is monetary value stored electronically, issued on receipt of funds for making payments and accepted by others than the issuer, as in prepaid cards and many wallets. E-money institutions are authorised under the Electronic Money Directive (2009/110/EC), need 350,000 euro of initial capital and must redeem e-money at par value on request.
• Safeguarding of client fundsSafeguarding is the duty of payment and e-money institutions to protect the funds they receive from users, so that users are repaid first if the firm fails. Under PSD2 and the Electronic Money Directive, firms keep the funds segregated in a separate bank account or in safe liquid assets, or cover them with an insurance policy or a bank guarantee.
• PSD2 (Second Payment Services Directive)The second Payment Services Directive, Directive (EU) 2015/2366 (PSD2), is the EU law on payment services and their providers, applicable since January 2018. It sets authorisation, transparency, execution time and liability rules, created regulated payment initiation and account information services, and required strong customer authentication. PSD3 and the PSR will replace it.
• PSD3 and the Payment Services Regulation (PSR)PSD3 and the Payment Services Regulation (PSR) are the EU package proposed in June 2023 to replace PSD2. PSD3 covers licensing and supervision of payment and e-money institutions, while the directly applicable PSR covers conduct, open banking, fraud and liability, including refunds for some impersonation fraud. A provisional agreement was reached in November 2025.

Sources

• Directive (EU) 2015/2366 on payment services in the internal market (PSD2), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.