ECB announces Eurosystem oversight framework for electronic payments

The framework aims to oversight Eurosystem’s principles that assess the safety and efficiency of the entities that fall within the scope of its oversight in a harmonised manner. First, it aims to replace the existing harmonised oversight approach and oversight standards for payment instruments, including all the related oversight frameworks for cards, direct debits, and credit transfers, as well as the security objectives for e-money. 

Its scope includes payment instruments that are offered to end-users and denominated in or funded in euro, partly or fully backed by euro, or redeemable in euro.

Second, the PISA framework aims to address technological and regulatory changes and builds on the experience gained by the Eurosystem in the oversight of payment schemes and payment instruments over the years. Accordingly, its scope includes digital payment tokens (e.g. stablecoins), alongside ‘traditional’ payment instruments and schemes. Another new feature is the inclusion of payment arrangements in the framework.

And third, as the framework follows the principle of proportionality, its final goal is to set requirements for those entities that play a more significant role in the euro area.

The PISA framework is aimed at the governance bodies of payment schemes/arrangements. The Eurosystem has defined criteria to identify and oversee these based on their relevance for the overall payment system and those which are exempt. These criteria consider the size, market penetration, and geographical relevance of a payment scheme/arrangement within the euro area and are summarised in the exemption policy.

The public consultation offers interested parties the opportunity to comment on the PISA framework. Following the expiry of the deadline for submitting responses on 31 December 2020 at 18:00, the ECB will assess all comments received and amend the documents as appropriate. The final version of the PISA framework will then be published, together with a summary of the consultation feedback, and will become applicable one year after publication.