Payment institution (PI) Definition.
PI: a status created by the first Payment Services Directive (PSD1, 2007, transposed in France in 2009) that allows a firm to provide payment services (acquiring, transfers, payment initiation, account information) without being a bank. Licensed and supervised by the ACPR, a PI is subject to capital requirements, safeguarding of funds, and AML/CFT rules, but it can neither take deposits nor grant credit except under narrow exceptions. Most European PSPs and PayFacs operate under this status.
See also
Where this term appears
GuideThe role of banksGuideMerchant, acquirer, PSPGuidePayment regulationGuideFrench fintech: an overviewGuideAgents, distributors, and banking-as-a-service: who is liable for whatGuidePayments in the Netherlands and BelgiumGuideProtecting customer funds, and what happens when the institution failsGuideWhat a payment service provider must reportGuidePayments in FranceGuidePayments in Greece, Cyprus, and MaltaGuideLuxembourg and Europe’s licensing hubsGuideMonaco, Andorra, San Marino, Liechtenstein, and the Crown Dependencies