Payment Services Providers (PSP)


Payment Services Providers (PSPs) or Payment Institutions (PIs) are regulated by the Financial Institutions Act (CAP.376), that transposes the Payment Services Directive (PSD).

The specific activities licensable under the provisions of the Financial Institutions Act in relation to Payment Services can be set out as follows:

(Source: Financial Institutions Act Chap 376, Second Schedule)

List of Activities

  1. Payment institutions may engage in the following activities:
    • a) Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account;
    • b)Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account;
    • c) Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider:
      • (i) execution of direct debits, including one-off direct debits;
      • (ii) execution of payment transactions through a payment card or a similar device;
      • (iii) execution of credit transfers, including standing orders;
    • d) Execution of payment transactions where the funds are covered by a credit line for a payment service user:
      • (i) execution of direct debits, including one-off direct debits;
      • (ii) execution of payment transactions through a payment card or a similar device;
      • (iii) execution of credit transfers, including standing orders;
    • e) Issuing and/or acquiring of payment instruments;
    • f) Money remittance;
    • g) Execution of payment transactions where the consent of the payer to a payment transaction is transmitted by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting solely as an intermediary on behalf of the payment service user and the supplier of the goods and services.The following additional activities may also be carried out by a payment institution:
  1. The provision of operational and closely related ancillary services such as ensuring execution of payment transactions, foreign exchange services strictly in relation to payment services, safekeeping activities, and storage and processing of data;
  2. The operation of payment systems;
  3. Without prejudice to the provisions of article 5(6) of the Financial Institutions Act, business activities other than the provision of payment services;
  4. When payment institutions engage in the provision of payment services, they may only hold payment accounts used exclusively for transactions; any funds received by payment institutions from payment service users with a view to the provision of payment services shall not constitute a deposit or other repayable funds within the meaning of article 2 of the Banking Act, or electronic money within the meaning of article 2 of the Banking Act;
  5. Payment institutions may grant credit related to payment services referred to in paragraph (1)(d), (e) or (g) above only if the following requirements are met:
    • (i) the credit is ancillary and granted exclusively in connection with the execution of a transaction; and
    • (ii) notwithstanding national rules on providing credit by credit cards, the credit granted in connection with a payment and executed with the act shall be repaid within a short period which shall in no case exceed twelve months; and
    • (iii) such credit is not granted from the funds received or held for the purpose of executing a payment transaction; and
    • (iv) the own funds of the payment institution are at all times, to the satisfaction of the supervisory authority, appropriate in view of the overall amount of credit granted.