Payment service for marketplace

We advised an international Fintech company on the following project:

DESIGN OF PAYMENT SERVICE FOR MARKETPLACE OPERATOR

Under PSD1, marketplace operators were able to intermediate payments between marketplace users without the need for authorizations, licenses, AML regime, SCA, etc. Therefore, the marketplace operator was able to, for example, mediate the transfer of payment from the watch buyer to the seller who listed the watch for sale. The PSD2 Directive has narrowed the ability to perform such activities without authorization. Under PSD2, such intermediation may not be performed by entities that act as agents in transactions for both parties thereto, i.e. where both parties are users of the platform on similar terms. Marketplace operators may not provide the right customer experience and conversion if they are entirely excluded from the payment process. For an international leading Fintech company, we designed a payment service designed for deployment by marketplace operators, ensuring that these operators are not offering brokerage services without proper authorization, while still being able to provide the right UX and conversion on the platform.

The advisory services of DLK Legal included:

• proper definition of the regulatory roles of all participants in the process
• operationalization of the criterion of activities for the benefit of a contracting party
• operationalization of the criterion of resources