A PSD Agent is an entity that provides payment services on behalf of an authorized payment institution or an electronic money institution (EMI). In simpler terms, they act as intermediaries, facilitating payment transactions for these institutions.
Here's a breakdown of what that means:
- PSD: Refers to the Payment Services Directive (PSD2), a European Union law governing payment services.
- Payment Institution (PI) and Electronic Money Institution (EMI): These are companies authorized to provide payment services or issue electronic money, respectively. They are regulated and require licensing.
- Agent: The PSD Agent is appointed by a PI or EMI to perform specific payment service functions on their behalf.
Therefore, a PSD Agent does not require its own separate authorization from regulatory bodies if it's acting on behalf of a licensed PI or EMI. The PI/EMI is responsible for the agent's compliance.
Key Aspects of PSD Agents:
- Acting on Behalf: They operate under the license and responsibility of the PI or EMI that appointed them.
- Payment Service Provision: They perform various tasks related to payment services, which could include:
- Accepting payments
- Initiating payments
- Processing transactions
- Managing customer accounts (on behalf of the PI/EMI)
- Regulatory Oversight: While the agent itself isn't directly regulated, the PI or EMI overseeing them is and is responsible for the agent's adherence to regulations.
Example:
Imagine a small online retailer wanting to accept payments via a popular payment gateway. The payment gateway is likely an authorized PI or EMI. The retailer, in some instances, might be acting as a PSD Agent for the payment gateway by directing payments through their systems and adhering to the gateway's payment processing rules.
In Summary: A PSD Agent is a crucial extension of licensed payment institutions and electronic money institutions, enabling them to expand their reach and offer services through a wider network of intermediaries while remaining compliant with payment regulations.
