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EU Court of Justice rules on the difference between payment institutions, e-money institutions and banks when it comes to holding customer money

23 februarie 2024

„The activity of a payment institution which consists in receiving funds from a user of a payment service, where such funds are not immediately accompanied by a payment order and therefore remain available on a payment account, within the meaning of Article 4(12) of Directive 2015/2366, operated by that institution, constitutes a payment service provided by that payment institution, within the meaning of Article 4(3) of Directive 2015/2366, and not a transaction consisting in the issuance of electronic money, within the meaning of Article 2(2) of Directive 2009/110.” decided European Court of Justice.

Payment institutions may hold client money for the purpose of payment transactions, even though no concrete payment transaction can be identified. So no limitation in timespan.


E-money institutions may hold client money for the purpose of iussing e-money. E-money must be electronically ‘stored’, which implies that it has converted into a monetary asset separate from the funds received, and that its use as a means of payment is accepted by a natural or legal person other than the electronic money issuer.

Banks may also pay interest.

Both e-money institutions and payment institutions must have a really defense investment policy for the client money and must seperate client money from their own accounts. Banks may use the client money to invest or lend out and do not need to seperate it from their own accounts.said Emanuel van Praag, Counsel at Kennedy Van der Laan.

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:

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In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?