1. Page 1 Payments in the digital economy in EU Marc Jamet Senior Consultant Euralia European Public Affairs, Brussels 11-12 June 2009 - Quanzhou

2. Page 2 Agenda Context : situation of the payment services in the EU European Legal Framework Industry initiatives

3. Page 3 European and historical context since 1999, one single currency : the €uro Development of the e-commerce in Europe and the cross-border transactions was slow down by lack of confidence in on-line means of payments Dangers : Payment frauds, Phishing, Lack of confidence

4. Page 4 Different existing means of payment in Europe Banking and Credit Cards (36% of the transactions in Europe in 2007) Direct Debits (28% of the transactions) Credit Transfers (26% of the transactions)

5. Page 5 Different traditions in the use of payments services Cards in UK, France & Scandinavia Direct Debits in Germany and Austria… Ex: in France « Cartes bancaires » Payments represents : 80% of e-commerce in France 5% of all « Cartes bancaires » payments A European political will to harmonize means of payment and cross-border transactions Needs a flexible but secure legal framework for payment in the internet

6. Page 6 Legal Framework Directive 2000/46/CE on electronic money -authorises non-bank institutions to issue electronic money and creates e-money institutions -Creates a European passport" (single licence) for e-money institutions -Imposes initial capital requirements : 350 000 € -Consumers can always withdraw their electronic deposit Regulation 2001/2560 on cross-border payments in Euro -principle of equal charges for national and cross-border payments in the Eurozone: direct debits, credit transfers, electronic payments (including card transactions) Directive on payment services -A new legal framework for the SEPA initiative -New status : Payment Services Providers (PSP) with new rights and obligations

7. Page 7 Self-regulation, Standards, Code of Conduct : The banking industry organises itself Standards on security of payments 3DSECURE : a common standard on security procedures for electronic payments SEPA = Single European Payment Area (industry self- regulation monitored by the European Commission) Objective : “SEPA is the area where citizens, companies and other economic participants can make and receive payments in euro, within Europe, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location.” -Standardisation of means of payments (Cards, Direct Debits and Transfers) -Cooperative approach on security -Interconnection framework on processing -Governance at the European level (European Payment Council)

8. Page 8 Contact us For any complementary information: Euralia Rue du Luxembourg, 19/21 B-1000 Bruxelles Tel: + 32 2 506 88 20 Website: www.euralia.eu marc.jamet@euralia.eu