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Enabling you to gain access to 512 million consumers across Europe and offering payment services, including, payment accounts, payment processing, merchant acquiring and money transfer services.

Payment Institution (PI),
Ireland

Introduction

If you wish to become a Payment Institution in Ireland, then you will need to apply to the Central Bank of Ireland for authorisation as a Payment Institution. Below you will find key information and requirements to become a Payment Institution in Ireland.

The key objectives of the PSD2 directive are to contribute towards creating a more integrated European payments market, making payments safer and more secure and protecting consumers.

The European payments market size is substantial and growing continually. The total amount of non-cash payments in Europe increased to over 122 billion in 2016. The total number of payment cards grew to over 1.5 billion in 2016. In relation to card transactions, in 2017, the 45 largest merchant acquirers in Europe processed 67.5 billion payments, from 10 million merchants, valued at €2.4 trillion.

List of services provided by a Payment Institution Licence in Ireland

Payment Institution licence in Ireland enables the licence holder to offer a number of services:

  1. services enabling cash to be placed on a payment account and all the operations required for operating a payment account;

  2. services enabling cash withdrawals from a payment account and all the operations required for operating a payment account;

  3. the 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, including, execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; execution of credit transfers, including standing orders;

  4. the execution of payment transactions where the funds are covered by a credit line for a payment service user, including, execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; (iii)execution of credit transfers, including standing orders;

  5. issuing payment instruments or acquiring payment transactions;

  6. money remittance;

  7. payment initiation services;

  8. account information services.

 

The Irish regulator for Payment Institutions

The Central Bank of Ireland regulates firms that provide regulated services, including, payment services, electronic money, lending and investment services.

If you wish to provide payment services in Ireland, such as payment processing or money remittance,  you will require a Payment Institution licence from the Irish regulator, namely, the Central Bank of Ireland.

 

Advantages of obtaining a Payment Institution licence in Ireland

     -     Top 15 most innovative countries in the world.

     -     1st in the world for investment incentives.

     -     Low corporation tax rate of 12.5%

     -     1st in the world for flexibility and adaptability for people.

     -     The best country in Western Europe to invest in.

     -     Top 10 global ranking for education and skills.

     -     2nd most competitive economy in Europe.

 

Key features of the Payment Institution licence in Ireland

     -     A licence issued in Ireland is recognised in all other EEA (European Economic Area) member states. Through ‘passporting’, this enables the payment institution to operate across all EEA countries with a single licence.

     -     Issue payment accounts with IBAN codes, across Europe.

     -     Join payment schemes such as SEPA.

     -     Issue Visa or Mastercard payment cards for both individual and business users.

 

The regulations for Payment Institutions in Ireland

The Payment Service Directive 2 or PSD2 for short, is an EU Directive (Directive 2015/2366) that sets requirements for businesses wishing to provide payment services. It applies to banks, building societies, payment institutions, e-money institutions and their customers.

The PSD2 directive aims to promote innovation within the payments sector and improve protection for consumers, whilst making payments both safer and more secure. The PSD2 directive came into force on 13 January 2018.

The key objectives of the PSD2 directive are to:

     -     Contribute to a more integrated and efficient European payments market

     -     Improve the level playing field for payment service providers (including new players)

     -     Make payments safer and more secure

     -     Protect consumers

 

 

Key requirements to become a Payment Institution in Ireland

     -     A minimum capital requirement is €20,000 to establish a Payment Institution licence.

     -     The requirement to safeguard client funds either with a segregated client bank account or with an insurance policy.

     -     The management body of the payment institution must be of good repute and possess the relevant qualifications and experience to perform their duties.

 

List of documents required to apply for a Payment Institution licence application in Ireland

As part of a Payment Institution licence application in Ireland, the following information is required to be submitted with an application:

  1.  company identification details 

  2.  programme of operations 

  3.  business plan and financial forecasts 

  4.  a description of your business’s organisation structure 

  5.  evidence of your initial capital 

  6.  measures to safeguard the funds of your users 

  7.  compliance & governance arrangements and internal controls 

  8.  procedure for monitoring, handling, and following up on security incidents and security-related customer complaints 

  9.  processes for filing, monitoring, tracking and restricting access to sensitive payment data 

  10.  business continuity measures 

  11.  the principles and definitions applicable to the collection of statistical data on performance, transaction and fraud 

  12.  security policy 

  13.  internal control mechanisms to comply with obligations in relation to money laundering and terrorist financing (AML/CTF obligations) 

  14.  details of your qualifying holdings (shareholders) 

  15.  details of any outsourcing arrangements

 

Our People

Our team of regulatory and compliance experts boasts diverse backgrounds spanning various sectors, providing a holistic understanding of our clients' challenges. With our service being led by seasoned professionals, you'll have direct access to senior experts, often at the director level, ensuring personalised attention. Combining robust regulatory knowledge with commercial insight, our team delves deep into your business to tailor unique solutions specifically suited to your needs.

Seeking something more bespoke or not listed above? Contact us to discuss your unique requirements. With our expertise and experience in financial services, chances are we can assist you effectively.

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