Subject to any exceptions, payment business is a payment service which requires a licence. According to Section 1 para. 1 sentence 2 no. 3 of the German Payment Services Supervision Act (ZAG), this includes the execution of payment transactions, including transfers of funds to a payment account with the payment service user’s payment service provider or with another payment service provider by:
- the execution of direct debits, including one-off direct debits (direct debit business),
- the execution of payment transactions by means of a payment card or a similar payment instrument (payment card business),
- the execution of credit transfers, including standing orders (credit transfer business), in each case without the granting of credit.
The term “payment business” is described in more detail in BaFin’s guidance note (Hinweise zum Zahlungsdiensteaufsichtsgesetz (ZAG) dated 22/12/2011, as amended on 29/11/2017 at no. 2. b)).