Canada    FinTech Guide    Chapter 1    Spain

1. Payment Services Mobile Payment
AAA  Spain

Although cash and credit cards are still the most popular method of payment, Spain is up to speed in terms of national instant payments made on a mobile.

Legal Affairs

Fintechs that offer payment services are regulated by Law 16/2009 of 13 November on Payment Services (“LPS“) and Royal Decree 712/2010 of 28 May which implemented the European Payment Service Directive 2007/64/EC (“PSD“). According to Spanish law, payment services include:

  1. services enabling cash to be placed on a payment account, as well as all the operations required for operating a payment account;
  2. services enabling cash withdrawals from a payment account, as well as all the operations required for operating a payment account;
  3. execution of payment transactions;
  4. transfers of funds on a payment account with the user’s payment service provider or with another payment service provider;
  5. execution of payment transactions where the funds are covered by a credit line for a payment service user;
  6. execution of payment transactions where the funds are covered by a credit line for a payment service user;
  7. issuing and acquiring of payment instruments;
  8. money remittance; and
  9. execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device, and a payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.

To provide payment services in Spain, a firm must fall within the definition of a “payment service provider”, which includes credit entities; electronic money operators; Sociedad Esta-tal de Correos y Telégrafos, SA (the national postal service of Spain); the Bank of Spain; and the Spanish general government administration, regional and local authorities. A firm that provides payment services in or from Spain as a regular business (and is not exempt) must apply for registration as a payment institution with the Bank of Spain. Also must be registered with the Spanish Commercial Registry. Sanctions may be imposed on any individual or legal person providing payment services not being authorised to act in Spain as a payment service provider. Generally, payment services providers are subject to requirements concerning: Minimum share capital that may range from €20,000 to €125,000; Suitability of shareholders, directors and managers. Directors, managing directors and holder of other similar positions in financial institutions are subject to suitability, experience and honourability requirements; Corporate governance and internal control systems; Anti-money laundering policies; Customer services.

Economic Conditions

The payment services market is a growing market. All major banks in Spain have their own subsidiary providing payment services. Bizum is the most popular mobile payment app in Spain. (source: Observatorio de innovación y tendencias de Fintech 2018).

Contributing Authors

Ventura Garcés & López-Ibor

Claudi Garcés
Barcelona, Spain

Alfonso López-Ibor
Madrid, Spain

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018