Parliament votes for early agreement on new payment services

12.16.08pm UTC (GMT +0000) Tue 24th Apr 2007

Commenting on today's vote in the European Parliament on the Payment Services Directive (PSD) Sharon Bowles, Liberal Democrat European Economics Spokesperson and ALDE shadow rapporteur said,

"Already behind schedule a quick resolution for PSD was essential. With the clock ticking we have achieved this today. But I have been astonished at how difficulty it has been to try and get out of the dark ages on payment times, capital regimes and electronic money.

"The question I have most often been asked is "will it make payments cheaper" not "will it make payments safer". This is not a price regulation directive, but it should make payments cheaper through greater competition and through greater transparency so consumers can see exactly what they are paying for.

"I hope the ability for payment service providers to passport will enhance competition but I do harbour fears that the ongoing capital regimes, and the scaling factors of 0.5 and 0.8 for money remitters and mobile remittance respectively is repeating the mistakes made in the e-money directive.

So review of the capital regime after three years in the light of experience is certainly an essential backstop that has enabled Liberal support."

ENDS