Payments discussions to begin Under Danish EU Presidency

This breakthrough will allow the interinstitutional negotiations, aka trilogies, to commence under the incoming Danish EU Presidency.

The proposals, aimed to modernise the EU’s payment framework, with implications for a wide range of financial service providers, including those active in the consumer credit market.

A provision of particular relevance is Article 10 of PSD3, which governs the possibility of payment institutions to grant credit.

Both the Member States and the European Parliament agree that such credit is to be linked to the execution of a payment transaction and remain ancillary in nature. However, question marks remain as to the  repayment timelines:

The Council supports the Commission’s original proposal, capping repayment at a maximum of 12 months.

The European Parliament proposes that credit must be repaid within a "reasonably short period", with the specific timeframe to be determined by national competent authorities.

This, and many further details, remain to be ironed out before the new common rules will be become applicable.