🎧This new podcast episode explores who is liable when things go wrong using the EUDI-Wallet in payment transactions – and why regulatory reform is urgently needed. – Tune in now!
Who is liable when things go wrong?
In the fourth episode of our EUDI-Wallet series, moderator Dana Wondra is joined by Annerton partner Peter Frey to discuss a critical issue: how liability is distributed when the wallet is used for payments.
Legal uncertainty – and a clear message
Even when using the wallet, the bank remains the customer’s primary counterparty in case of liability. If a payment is contested, the burden of proof lies with the bank – even if the wallet was used. The bank is liable to the payer regardless of where the error occurred.
But pursuing recourse is complicated. Currently, there is no clear legal framework regulating whether and how banks can claim damages from wallet providers. eIDAS, PSD2, and the current PSD3/PSR drafts remain silent on this. There is also typically no contractual relationship between the bank and the wallet provider.
A call for legal clarity
Peter Frey calls for clear legal provisions, similar to those for payment initiation services: each party should be liable for errors within their domain and must prove that they were not at fault.
About This Podcast
Alles Legal – Fintech Law in Brief delivers weekly insights into legal and compliance topics in the banking and fintech sectors.
This podcast is a collaboration between Payment & Banking and PayTechLaw.
Each Wednesday, our experts explain current legal developments in a clear and concise way – no legalese, just the context you need. Since 2021, PayTechLaw authors and Annerton lawyers have been bringing legal depth to the mic without losing clarity.
Whether it’s PSD3, DORA or FiDA – we provide the background you need. In 20 minutes. Straight to the point.
