Licensing of payment service providers – payment functions

The Government is consulting on a list of payment functions that is intended to underpin a new licensing framework for payment service providers. The new framework is intended to ensure consistent and appropriate risk‑based regulation of payment service providers based on the payment functions they provide.

The Government seeks views from interested parties on the proposed list of payment functions and preliminary views on the proposed licensing framework. Specific consultation questions are outlined within the paper.

A further consultation paper on the regulatory obligations under the new licensing framework will follow in later this year.