Payment Systems

Public Consultation

On 9 June 2017 the Central Bank of Malta launched a Public Consultation on the implementation of the proposed text of the revised Directive relating to the Provision and Use of Payment Services in Malta, which will repeal CBM Directive No. 1 (Ref: CBM 01/2009). This revised Directive is modelled on the requisites of the Directive (EU) 2015/2366 on payment services in the internal market (PSD2).

This revised Directive, CBM Directive No. 1, will be issued in terms of article 34(5) of the Central Bank of Malta Act (Cap. 204 of the Laws of Malta) which empowers the Bank to issue, amend or revoke directives with respect to, inter alia, the regulation of payment services.

The proposed text of the revised Directive reflects the natural process of adaptation to embrace the technological developments that have affected the European payments landscape over the last few years. It expands the scope of services offered by the Payment Services Providers (PSPs) in order to meet the expectations of the Payment Services Users (PSUs) and also fosters competition in the market, giving PSUs further opportunities to choose the best providers and services.  

 In view of the fact that both the Bank and the Malta Financial Services Authority (MFSA) have been designated as Competent Authorities for the national transposition of the PSD2, the Bank notes that this Public Consultation and the proposed draft transposition text of the revised CBM Directive No.1 only covers the provisions falling under the remit of the Bank and represents exclusively the policy and views of the Bank.

With respect to PSD2 articles allowing derogations to the Member States, the Bank has proposed options which should meet the expectations of the parties involved. Nevertheless the Bank appreciates receiving the views expressed by all stakeholders on these matters.

In line with the general approach taken by the European Authorities and in order to facilitate the analysis and evaluation process, the Bank appreciates comments which:

  • indicate the specific point to which a comment relates;
  • contain a clear rationale;
  • provide evidence to support the views expressed/rationale proposed;
  • describe any alternative regulatory choices the Bank should consider.

Public Consultation Paper including the proposed draft transposition text of the revised CBM Directive No.1 can be found here.

The changes that are brought about by the PSD2 are explained in an infographic designed by the European Payments Council and which can be accessed here.

This Public Consultation is in line with the provisions of Directive No. 6 on Consultation Exercises with Stakeholders. More information can be found here.

Responses to this public consultation were received until 7 July 2017. The replies received are currently being analysed and a report on the Consultation Process together with the revised draft of the transposition text will be published on the Bank's website.