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Payment institutions and e-money institutions collect funds from their customers and hold these funds – sometimes for longer periods. Actually, in order to collect third party funds you need a license from BaFin for the deposit business. There are exceptions to this rule for payment services and e-money. However, it is not entirely clear how the deposit taking business differs from collecting funds as a payment service provider.
As this issue is very important in practice, I spoke to Dr Hugo Godschalk about the differences between a deposit, e-money and credit balances on a payment account. We also looked at the question of whether you have to be a bank to offer a current account. Finally, we also discussed proposals for legislators on how they could ensure a clearer distinction between deposits and the processing of payment transactions in the future.
Enjoy PayTechTalk 58 (the podcast is in German).
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