The European Central Bank (“ECB”) has adopted Decision (EU) 2025/222, promulgated in the Official Journal of the European Union (“EU”), which governs access by so-called “non-bank payment service providers” (“NBP-PSPs”) to payment systems operated by the ECB itself and by national central banks in Member States whose currency is the euro. The new rules, which enter into force on 9th April 2025, aim to ensure better integration of NB PSPs into the payment infrastructure.
NBP-PSPs are:
· payment institutions – legal persons licensed to provide and perform payment services (deposit of money into an account and related account maintenance operations; services related to the withdrawal of money from an account; the execution of direct debits, card payment operations, periodic transfers, etc.) within the EU;
· electronic money institutions.
According to the decision, NB-PSPs will be able to access, upon request, payment systems operated by the ECB itself or by the respective national central banks, including the so-called “Trans-European Automated Real-time Gross Settlement Express Transfer” system (“TARGET”), if certain conditions are fulfilled.
These conditions include security requirements for the necessary IT infrastructure for the integration of the payment system, preparation of relevant certification documents (at the discretion of the national bank), implementation of control systems, including for protection against cyber threats, etc.
An essential aspect of the regulation is the introduction of limits on the funds that NB-PSPs can hold at the end of the business day in accounts in the respective payment systems. For this purpose, formulas are provided for the calculation of the maximum holding amounts allowed in each individual payment system operated by a national central bank.
The decision prohibits central banks in the Euro area from offering and providing NB-PSPs with so-called “safeguarding accounts”, i.e. an account opened by the NB-PSP with the central bank or another credit institution that serves to separate its customers' funds from its own funds. The same restriction applies to crypto-asset service providers.
In order to ensure a smooth transition, NB-PSPs that currently rely on intermediated access to payment systems through banks will have a transition period until 31st December 2025 to adapt their operations to the new requirements. After this period, all NB-PSPs wishing to operate within TARGET and other payment systems, will have to switch to direct participation.
ECB will monitor the implementation of its decision, whereas sanctions for breaches are envisaged. For example, in case of non-compliance with the maximum holding amounts, a penalty of 0.03% will be imposed on the total amount by which the limit is exceeded. In case of systematic non-compliance with the amount limits or other requirements under the decision, central banks will be able to suspend the participation of the respective NB-PSP in the payment systems and even impose additional sanctions.
By adopting this approach and allowing more private entities access to immediate payment mechanisms, the ECB is promoting competition while preserving financial stability and security. The change will likely also resolve the issue raised repeatedly by the NB-PSPs in recent years, related to their desire for direct access to the payment systems supported by central banks.
