Payment institutions: outgoing notifications

The Payment Services Directive ((EU) 2015/2366 – PSD2) provides for a licensing system for payment service providers – other than banks – in which the home member country's competent authority is responsible for granting and withdrawing licenses, and in which licensed payment service providers (referred to as payment institutions) are authorised on the basis of their licence to provide payment services in the other EEA member countries by providing services to these member countries or from a branch office based in these member countries.

Before payment institutions can use their “European passport” and operate in any other member country of the European Economic Area (EEA), they must notify DNB of their intention to do so in accordance with a set procedure. More details can be obtained by using the links below. The Netherlands has implemented the Directive’s article on notifications in Section 2:106a of the Financial Supervision Act (Wet op het financieel toezicht – Wft). If the payment institution meets the requirements in force, DNB will notify the supervisory authority of the EEA country concerned. DNB publishes the notifications in its public register of payment institutions.

Many payment institutions from other EEA member countries rely on a notification to provide services in the Netherlands.

Types of notifications

With their European passport, payment institutions can operate in other member countries in the following three ways:

1. from a branch established in the other member country
2. through the intermediary of a payment services agent established in the other member country
3. by performing cross-border services to the other member country.

Payment institutions with a licence issued by the competent authorities of another member country wishing to operate through a payment services agent in the Netherlands must notify DNB in advance of their intention to do so. The relevant documentary evidence must be available for inspection at all times.

The notification may only be made for those payment services for which the payment institution has obtained a licence. When the notification procedure has been completed with the institution’s entry in the registers and the institution starts operating in the other member country, it must also comply with the legislation and regulation in force in that other member country.