Regulation and definition of
inovative payments
JUDr. Denisa Jindřichová, Ph.D.JUDr. Denisa Jindřichová, Ph.D.
Cash & Payment Systems DepartmentCash & Payment Systems Department
Czech National BankCzech National Bank
Masarykova univerzita
Brno, 29. listopadu 2012
2
• Definition
• Types + Regulatory framework
• Future - Green Paper
3
Definition
What does it mean
„an inovative payment“?
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Definition
• Mobile payment (m-payment)
• E-wallet
• E-payment
• Internet payment
• Payment terminals
• Payment card
5
• Definition
• Types + Regulatory framework
• Future - Green Paper
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Types
• E-payment x internet banking
• M-payment x GSM banking
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Payment system
providers (§ 5)
Oprávněné osoby poskytovat platební služby jako podnikání jsou pouze tyto:
• banky za podmínek stanovených zákonem upravujícím činnost bank,
• zahraniční banky a zahraniční finanční instituce za podmínek stanovených zákonem upravujícím
činnost bank,
• spořitelní a úvěrní družstva za podmínek stanovených zákonem upravujícím činnost spořitelních
a úvěrních družstev,
• instituce elektronických peněz za podmínek stanovených tímto zákonem,
• zahraniční instituce elektronických peněz za podmínek stanovených tímto zákonem,
• vydavatelé elektronických peněz malého rozsahu za podmínek stanovených tímto
zákonem,
• platební instituce za podmínek stanovených tímto zákonem,
• zahraniční platební instituce za podmínek stanovených tímto zákonem,
• poskytovatelé platebních služeb malého rozsahu za podmínek stanovených tímto
zákonem,
• Česká národní banka
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Payment services (§ 3)
• Cash deposits and withdrawals
• Transfer of funds
- credit transfers
- direct debits
- payment order given by payment instrument
(e.g. payment card)
• M-payments
• Money remittances
M-payment
• „provedení platební transakce poskytovatelem
služeb elektronických komunikací, jestliže je
souhlas plátce s provedením platební
transakce dáván prostřednictvím
elektronického komunikačního zařízení.“
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Waivers of regulation
• § 3 odst. 3 písm. d) bod. 7
platební transakce prováděná
7. poskytovatelem služeb elektronických komunikací
prostřednictvím elektronického komunikačního zařízení, slouží-li
platební transakce k zaplacení zboží nebo služby, které jsou
dodány do elektronického komunikačního zařízení a budou
užívány prostřednictvím elektronického komunikačního
zařízení, přičemž poskytovatel služeb elektronických komunikací
nejedná pouze jako zprostředkovatel platby mezi uživatelem
platebních služeb a dodavatelem zboží nebo služby,
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M-payments
• Czech mobile operators are active and would like to use the
mobile as payment instrument – paying mainly for transport,
ticketing, culture, sports, public fees, schools or internet shops.
• Users benefits are the ability to pay from anywhere at very
easy anytime (no cash)
• It is quick and easy for everyone.
Types of M - payments
• DMS – Donors message service (2004)
• m-ticketing – Prague public transport (2008)
• m-doctor fees – in a few Czech hospitals (2008)
• m-parking, paying for e-newspaper or advertisement
M-payments
• It would be so nice to replace my wallet with a mobile phone –
would it also be so simple?
• Everybody can open his/her wallet and pay with credit card or cash
• How many of 3 billion mobile users can really use extended mobile
functionalities?
Public transport
• SMS ticketing in public transport
• Prague public transport - 2007
• Pilot project started November 22nd 2007 for bus, tram, metro
• already more 10% of tickets sold via SMS
• 2008 – potential also for other tickets and zones including city-railway
• Based on semi-premium SMS (MO billed)
• Positive feedback from other municipalities
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Czech payment service
providers
• 18 payment institutions
• 61 „waived“ payment institutions
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Types of payment system
providers
• Money remitters
• Mobile operators
• Issuers of credit cards
• On-line exchange offices
• Payment terminals
E-money (§4)
• „ means electronically, including magnetically,
stored monetary value as represented by a claim
on the issuer which is issued on receipt of funds
for the purpose of making payment transactions
as defined in point 5 of Article 4 of Directive
2007/64/EC, and which is accepted by a natural
or legal person other than the electronic money
issuer „
• EMI and „waived EMI“
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Czech issuers of E-Money
• 1 Czech EMI
• 11 „foreign“ EMIs
• 7 (formerly 67) „waived EMIs“
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Types of „waived EMIs“
• Public transport
• City card
• E - shops
• Cashless transfer via mobile phone (JAVA
application)-M-payments (Mopet/Mobito)
• University/Campus
Licence
XXOther business activities
XXOperate payment system
XXProvide related activities
(incl. granting credits)
XXProvide payment services,
not related E-Money
XProvide payment services,
related E-Money
XIssue of E-Money
EMIPI
Czech Republic – general overview
1) 44 banks which offer payment cards
• Banks (21) offer also:
– Internet banking
– GSM banking or
– M-payments
2) Non-bank issuers of credit cards
Payment cards
• Payment cards are actually used mainly as payment
instruments
• cash withdrawals at ATM
• bill payments, cash deposits,
• purchase of pre-paid credit for mobile phones,
• account balance,
• payment of invoices for mobile operators,
• activation of payment cards or expiration of payment
cards.
Statistics (Czech Republic)
Statistics (Czech Rep.) - cont.
Surcharging
• Article 52.3 PSD allowed
„The payment service provider shall not prevent the
payee from requesting from the payer a charge or from
offering him a reduction for the use of a given payment
instrument. However, Member States may forbid or
limit the right to request charges taking into account
the need to encourage competition and promote the
use of efficient payment instruments“
• Surcharging - is extra fee of merchant
Payment via other entity –
E-payment
M-payment
M-payment
Card scheme
Card scheme
• The payment card scheme represents the most robust value
chain with 4 core parties involved:
• Card holder/customer,
• Issuer
• Acquirer
• Merchant
• Card authorization processing includes more participants:
• brand provider (MasterCard, Visa…)
• Authorization center (e.g. Global Payments Europe)
• Issuer-Acquirer clearing provider (Czech National Bank)
• Payment Card Brands (Visa, MasterCard, Dinners, Amex, JCB)
enable wide acceptance of payment card through common EMV
standards.
NFC
NFC (Near Field Communication)
Experience
• MasterCard - PayPass (Slovakia)
• Visa with payWave - Turkey or Poland.
M-payment
secure mobile contactless payments is needed:
• a chip or Secure Element „SE”
Bank Card Association
• Interest group of juristic persons - banks and
other entities which promote the expansion
of payment cards in the Czech Republic and
coordinate the related activities
• Security Committee
SBK+APMS
Financial Arbitrator
• Commenced his activity on 1 January 2003
on the basis of Act No. 229/2002 Coll., on the
financial arbitrator, as amended → legal acts
of the European Communities
• Consumer protection in case of disputes
• Disputes concerning problems related to:
a debit card or other electronic device
• Instituted upon request by the petitioner
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• Definition
• Types +Regulatory framework
• Future - Green Paper
Regulation of innovative
payments
• Public consultation- deadline 11/4/2012
• Public hearing May 2012
• More than 300 responses
• First draft 2013?
Regulation of innovative
payments
• „SEPA“ for innovative payments
• Payment card as innovative form of payment?
• Unclear definitions
• „Payment“ by mobile phone
• Co-badging
• Access to payment system
• Availability of funds information
Děkuji za pozornost
Dotazy ???
Denisa JindřichováDenisa Jindřichová
Sekce peněžní a platebního styku
tel.:22441 2252
denisa.jindrichova@cnb.cz