Country _ Name
Peru
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

We have a good environment to promote more offers for payment services. The regulation accepts any kind of payment service in case of the banking companies or regulated electronic money companies. In case of non-banking companies, they need to obtain a license as electronic money company. The provider of the sole electronic platform to allow those payment services is not a regulated company. In this last case, the providers need to follow the general contracts regulation to avoid any breach of the law, by respecting the will to sign contracts, the rights for consumers and the right to be informed about the hired services. Regarding wallets, these companies are not regulated and are allowed to connect the clients with merchants for payments. Until now, all the wallets in Peru are related to a supervised company as banks to collect and debit their customer´s accounts.  The Superintendence of Banking, Insurance and Pension Funds Administrators called hereinafter as SBS continues to supervise the issuance of electronic money, and all digital wallets must operate in partnership with a licensed financial institution.


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

Electronic payment services are allowed for banking and financial companies. Such banking companies do not need any additional license. For a new company, it will first need to be incorporated as an electronic money company, by obtaining a license before the Peruvian Banking Regulator, the SBS. The license cost could vary, depending on the law firm fees, and could cost USD30,000 and take 12 months approximately. The required minimum capital for a new company equals to USD700,000. This minimum capital must be fully paid-in and adjusted periodically according to the SBS. Additionally, companies must present an operational plan, a risk management system, a compliance program aligned with anti-money laundering (AML) regulations, and a cybersecurity policy. The authorization process consists of two stages: (i) organizational license and (ii) operating license. All documentation must be filed in Spanish and include a description of the technological infrastructure.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

The Regulator authorized to approve the operating license is the SBS. The Data Protection Agency is competent for the data privacy rights during the existence of the company. In case of consumer’s right protection, Indecopi is the agency in charge of such protection. Additionally, the SBS is responsible for supervising compliance with anti-money laundering (AML) obligations applicable to electronic money institutions


Economic conditions

Market size for payment services and biggest payment service providers

There is always a market for this sort of companies in Peru. Our country still faces the need to increase the financial services to be provided by the market. Electronic wallets using mobiles are now a big part of the payment method within the market. This method allows the inclusion for sectors that were out of the financial system. Wallets are moving the market very fast, increasing the payments more that the credit and debit cards. Since 2022, Peru has implemented full interoperability among digital wallets such as Yape, Plin, Agora, and others, which has accelerated adoption in underbanked sectors. The Peruvian Central Bank promotes this interoperability to deepen financial inclusion and reduce the use of cash.

The biggest player in the market is BCP – Banco de Credito del Peru, which is a Peruvian financial group called Credicorp. BCP Group mostly counts with Peruvian capital and Peruvian financial sources. It has a presence outside Peru in Bolivia, Chile, Colombia, Panama, and the United States of America. Credicorp is Peru´s largest financial holding, with BCP as its principal banking arm. The group also includes Mibanco (focused on microfinance), Credicorp Capital (investment banking), among others.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

N/A



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