Finance ministers unanimously approved a general approach on the Payment Services Directive on 27 March 2007. The Directive proposal aims to:
- Enhance competition by opening markets;
- harmonise market-access requirements for non-bank payment service providers;
- introduce a clear and simple set of information requirements, and;
- standardise rights and obligations for users and providers of payment services.
One of the main sticking points was the requirement for non-bank service providers. Allowing non-bank providers into the payments market would, for example, let consumers make payments with their mobile phones or pay their electricity bill in supermarkets.
The agreement followed intensive discussion by member states between those favouring a more liberal approach on regulatory requirements for non-bank service providers (the UK and Sweden), and those who support a stricter set of rules, namely France, Spain and Italy. In its report on payment service, the Parliament's Committee on Economic and Monetary Affairs also favours a higher level of regulation (see EurActiv 18 September 2006).
The compromise formula that member states agreed on allows non-banking institutions to be able to offer credit but only within a limited 12-month period.
Parliament sources suggest that, in the end, the liberal camp had to give in. However, Commission spokesperson Oliver Drewes insisted that the fact that it was voted by unanimity showed that all sides were satisfied with the compromise.
Along with the Payment Services Directive, finance ministers agreed on a directive to improve rules on how banking mergers are approved, making them more transparent and free from political intervention. (see EurActiv 14 March 2007).
