We decipher for you various publications on the subject of payments.
Let's focus today on the regulation of payment and e-money services in Europe, with an emphasis on virtual IBANs (vIBANs).
Slide
We decipher for you various publications on the subject of payments.
Let's focus today on the regulation of payment and e-money services in Europe, with an emphasis on virtual IBANs (vIBANs).
On April 24, the European Parliament responded to market expectations by voting on the 1st reading of the two proposals for a Directive and a Regulation aimed at regulating the terms and conditions for the provision of payment and e-money services in the internal market. While the two texts voted on partially take into account feedback from stakeholders on the initial proposal, the final versions are still eagerly awaited for the end of 2024.
Although there are no clear regulations governing them, virtual IBANs (vIBANs) are an operational reality, enabling the use of funds from a payment account (IBAN) to be associated with a multitude of vIBANs. In a report, the ABE lists the numerous business use cases that rely on vIBANs for both cash receipts (PayIn) and cash disbursements (PayOut). The EBA considers that there are two main types of risk associated with vIBANs: on the one hand, the possibility of unregulated players gaining access to payment services in this way, and on the other, significant differences in the supervisory framework applied to vIBANs, depending on the national authorities. The EBA proposes recommendations to cover these risks, and in particular calls for the notion of vIBAN to be introduced in the forthcoming payment services package.
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