Payment Services Providers (PSP)

The specific activities licensable under the provisions of the Financial Institutions Act in relation to Payment Services can be set out as follows:

(Source: Financial Institutions Act Chap 376, Second Schedule)

List of Activities

(a) Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account;

(b) Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account;

(c) Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider:

1. execution of direct debits, including one-off direct debits;
2. execution of payment transactions through a payment card or a similar device;
3. execution of credit transfers, including standing orders;

(d) Execution of payment transactions where the funds are covered by a credit line for a payment service user:

1. execution of direct debits, including one-off direct debits;
2. execution of payment transactions through a payment card or a similar device;
3. execution of credit transfers, including standing orders;

(e) Issuing of payment instruments and/or acquiring of payment transactions;

(f) Money remittance;
(g) Payment initiation services; and (h) Account information services.

Additional Activities

(a) The provision of operational and closely related ancillary services such as ensuring execution of payment transactions, foreign exchange services, safekeeping activities, and storage and processing of data;

(b) The operation of payment systems without prejudice to Article 35 of the Payment Services Directive as transposed in a directive issued by the Central Bank under the Central Bank of Malta Act;

(c) Without prejudice to any applicable European Union or Maltese law and without prejudice to the provisions of article 5(6) of the Financial Institutions Act, business activities other than the provision of payment services;

(e) Payment institutions may grant credit related to payment services referred to in paragraph (2)(d) or (e) of this Schedule only if the following requirements are met:

1. the credit is ancillary and granted exclusively in connection with the execution of a transaction; and
2. notwithstanding national rules on providing credit by credit cards, the credit granted in connection with a payment and executed with the act shall be repaid within a short period which shall in no case exceed twelve months; and
3. such credit is not granted from the funds received or held for the purpose of executing a payment transaction; and
4. the own funds of the payment institution are at all times and, to the satisfaction of the competent authority, appropriate in view of the overall amount of credit granted.

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