Digital Payment Services in Germany: Legal Advice, Compliance and Regulatory Pitfalls
Digitalization is revolutionizing payment. More and more companies, platforms and service providers are taking on tasks that were previously the exclusive preserve of banks.
However, anyone who processes payments for third parties, offers customer cards, vouchers or digital wallets quickly finds themselves within the scope of the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz, ZAG) - often without even knowing it. The consequences can be serious.
What are digital payment services and why is the ZAG so important?
Digital payment services are all services in which funds are received, managed or forwarded for third parties - for example when operating online platforms, offering vouchers or digital wallets. The Payment Services Supervision Act regulates who may offer such services in Germany and which requirements must be met. It applies not only to banks, but also to companies that process payments, issue vouchers or provide digital payment solutions. Even the mere administration of customer funds or the settlement of payments for third parties may require a BaFin license. Anyone providing payment services without this license is exposed to considerable liability risks.
When do companies become payment service providers?
The threshold for becoming a payment service provider requiring a license is often lower than many people assume. Even seemingly everyday business transactions can lead to companies suddenly falling under BaFin regulation - with considerable legal and financial consequences. Particularly risky: anyone acting without the required license risks fines, warnings and even criminal prosecution.
Typical constellations in which companies quickly become payment service providers:
- Processing payments between third parties, for example on online marketplaces
- Offering customer cards, vouchers or loyalty systems
- Managing customer funds in trust accounts
- Developing apps or platforms with integrated payment functions
An early legal review is therefore recommended, particularly for new digital business models, in order to avoid any unpleasant surprises.
Which business models require a license? Are there exceptions?
Not every business model requires a license. The ZAG distinguishes between payment services that require a license and those that do not. The details are decisive: if, for example, only a voucher is issued for purchases in your own store, an exception may apply. However, anyone who processes payments for third parties or manages credit balances generally requires a BaFin license. The consequences of not having a license are far-reaching: in addition to fines, there is also the threat of criminal prosecution and the loss of the business model.
How can you make your own business model legally compliant?
Companies should check at an early stage whether their business model falls under the ZAG. Professional legal advice helps to identify and avoid risks. It is often possible to create permit-free structures by making small adjustments - for example, by designing voucher systems or outsourcing certain payment functions to licensed service providers.
E-wallets, voucher systems and new regulatory developments
Digital payments, e-wallets and voucher systems have become an integral part of modern business life in Germany. At the same time, regulatory requirements at European level are constantly becoming stricter:
- Payment Services Directive (PSD3) and Payment Services Regulation (PSR): The EU is continuously developing the regulations for payment services. Companies must expect stricter requirements for fraud prevention, extended consumer protection rules and new reporting obligations. Data security requirements are also increasing.
- Instant Payments Regulation: Payment service providers in the eurozone are obliged to enable instant transfers in euros and ensure price parity with traditional transfers as well as secure recipient verification.
- Digital Operational Resilience Act (DORA): The requirements for the digital resilience and IT security of payment service providers are being continuously increased. These include stricter requirements for the management of operational risks and cooperation with IT service providers.
- Markets in Crypto Assets Regulation (MiCAR): The regulation of crypto assets provides for additional transparency and licensing obligations when issuing and managing digital assets.
These developments show: Providers of digital payment services and voucher systems must regularly check their business models for new regulatory requirements. Those who react early can minimize risks and make targeted use of competitive opportunities.
Our advisory services for digital payment services and ZAG
Are you planning to offer digital payment services or expand your business model in Germany? Our experienced attorneys will guide you through the complex world of the ZAG and help you to make your project legally compliant and future-proof. Practical insights and individual solutions are the focus of our advice.
Your attorney for digital payment services in Germany
We will be happy to answer any questions you may have about the licensing requirement, the BaFin license or the legally compliant design of your business model. We ensure greater security and success in digital payment transactions. Feel free to contact us with your questions! We support you with all legal and regulatory challenges relating to payment services.
The easiest way to reach our contacts is by e-mail (info@winheller.com) or by ephone (+49 69 76 75 77 80).
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