11 November 2009 News

 

Voice Commerce becomes one of the first fully authorised Payment Institutions

Voice Commerce it has become one of the first fully authorised Payment Institutions, having received authorisation to perform payments services from the Financial Services Authority in the UK under the Payment Services Directive. The introduction of the PSD means organisations can apply to the FSA to be authorised as a Payment Institution, a new category of Payment Service Provider, and as such can start operating payment services to merchants and consumers - a role which was previously the exclusive preserve of the banks. The license means Voice Commerce will be regulated in exactly the same way as banks in relation to their capital adequacy and regulatory responsibilities for payment services, and can begin processing payment transactions across Europe on an equal footing. The licence also means Voice Commerce can apply for Visa and MasterCard card scheme membership to start providing its own branded payment services including issuing cards to businesses and consumers and acquiring payment transactions.

The PSD came into force on 1 November 2009 across 31 countries of the EU. It provides the legal framework for the single European Payment Area and will regulate most payment transactions. Its enforcement creates a new regulatory regime around institutions dealing with payment transactions and introduces the role of a Payment Institution and sets out what they can and cannot do. The introduction of Payment Institutions is intended to embrace previously unregulated businesses and encourage growth of new, innovative payment services, as well as providing an alternative to the traditional payment service providers such as the banks.