Payments & E-money

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The payments and electronic money (e-money) sector is subject to an increasingly detailed regulatory framework. Depending on the business model, businesses in this space may face questions about the qualification of their services under the Payment Services Directive (PSD2) and the Electronic Money Directive (EMD2), the scope of the licensing requirements, exemptions and exceptions, safeguarding of client funds and assets, governance and internal controls, and the interaction with adjacent frameworks such as DORA, AMLD, and in certain cases MiCA. In the Netherlands, DNB grants licences to banks, payment institutions and electronic money institutions and acts as prudential supervisor in the sector.

 

Watsonlaw advises clients on a broad range of legal and regulatory matters relating to payment services, electronic money and digital finance. We assist founders, scale-ups, established financial institutions and international businesses in analysing and structuring innovative products and services, determining whether a licence is required, preparing for a licensing process and navigating the wider supervisory framework. Our work ranges from early-stage qualification and structuring questions to licence applications, policy design, regulatory engagement and ongoing compliance support.

 

As part of our broader Fintech practice, our Payments & E-money expertise covers both regulatory and transactional matters relating to payment flows, e-money products, wallet and stored-value structures, and the interaction between traditional payment regulation and crypto-linked models.

How can we help?

Focus areas

  • Qualification of services: Watsonlaw advises on the legal qualification of services and business models under PSD2 and EMD2. This includes assessing whether a model qualifies as a regulated payment service, whether electronically stored value qualifies as electronic money, and whether an exclusion, exception or exemption may apply. These questions are often fact-specific and should be analysed by reference to the actual operational flow rather than labels alone.

 

  • Payment services: Watsonlaw advises on the regulation of payment services under PSD2, including the licensing requirement for payment institutions, the scope of the eight regulated payment services, safeguarding, governance, outsourcing, DORA, AML/CFT and the practical aspects of the DNB application process. We also advise on passporting and cross-border activity within the EEA.

 

  • E-money issuance: Watsonlaw advises on the issuance of electronic money, including the distinction between e-money and payment services, the licensing requirements for electronic money institutions, redemption and safeguarding rules, and the relationship between the electronic money framework and adjacent regulation. We also advise on the interaction between e-money and MiCA in the context of electronic money tokens.

Our approach

Our approach is practical, pragmatic and hands-on. We understand that clients in the payments and e-money sector often operate in fast-moving and innovative environments, where legal advice needs to be clear, responsive and commercially workable.

 

We work closely with clients to help them navigate complex legal and regulatory questions, assess risk, and structure their activities in a way that is both compliant and operationally feasible. Our advice is tailored to the specific product, service or business model at hand and aimed at providing concrete guidance rather than abstract analysis.

 

We combine legal analysis with a clear understanding of how fintech businesses operate in practice. Our aim is not only to identify regulatory risk, but also to help clients move forward with a workable and well-structured solution.

Contact us.

Are you launching a payment, wallet or stored-value product, assessing whether a service falls within PSD2 or EMD2, or preparing for a licence application?

 

Watsonlaw advises on the full range of legal and regulatory questions relating to payment services and electronic money, including qualification, licensing, governance, internal documentation, safeguarding and the interaction with adjacent frameworks where relevant.

 

We are happy to assist with the legal qualification of your activities, the structuring of your product or service, the applicable legal framework and the next steps for your business.

Would you like to know more? Please contact Willem-Jan Smits or Rens Kattenbelt.

Client experiences.

  • “It is common to be spinning many plates when establishing a start-up. What I consider most important from a collaboration with a lawyer is: reassurance. So that I can sleep at night. And that is what I got.”

    Start-up entrepreneur

  • “They really dare to take steps. This often concerns untapped subject matter. You can count on them taking a position that can later be defended”

    Tech sector consultant

  • “They are very proactive, and they are pre-emptive when it counts, they radiate this. They are on point. We see things the same way: transparent, direct, know what to expect from each other, we both want to build something. They are so much more than lawyers. And if they don’t know something, they do their homework. They are terrific at that.”

    Crypto company entrepreneur

  • "Watsonlaw has truly contributed to the growth of our company. This is where the greatest added value lies. They give tangible advice and tell me what the best step is. That is exactly what I am looking for in a lawyer”

    Crypto company entrepreneur