On 2 June 2017, the Danish parliament adopted the long-awaited new Payment Services Act, which will come into force on 1 January 2018.
The purpose of the new act is to implement the second European payment services directive (PSD II).
The Danish special rules on processing of payment data and receipt of cash (the cash rule) have been subject to a lot of discussion and consultation during the reading in the Danish parliament. The less strict processing of payment data will be regulated by section 125 of the Act. Under section 125, business operators may, when the new Act comes into force, process payment data in connection with provision of services directly aimed at the consumer/user if prior explicit consent is obtained from the customer. This opens up for new possibilities in relation to the use of payment data and together with the new provisions on third parties, it is good news for both consumers and Danish Fintech businesses. We will soon elaborate more on the changed regulation concerning processing of payment data.
But it has finally been established that providers of payment instruments with limited use are not required to obtain a licence in the future as limited providers of payment services. For more information, see our previous news letter of 17 March 2017 her.
If you have any questions concerning the new Act, you may contact Lars Lüneborg or Kristian Kaltoft Nielsen.