Use of Payment Service Providers17th January 2024
The Commission is raising awareness of the use of non-bank payment service providers, such as electronic money institutions or EMIs, to ensure consumers know how to check adequate consumer protection is available.
While online payments are generally made through bank accounts, the use of electronic money (e-money) stored in an online account, wallet, or pre-paid account, which may then be used for payments, is becoming increasingly popular.
Only those payment service providers based within the Bailiwick, or specifically targeting Bailiwick residents, are required to be licensed by the Commission. Individuals and businesses within the Bailiwick are able to use payment service providers based elsewhere, however the Commission does not have regulatory remit over those providers based outside the Bailiwick.
Individuals and businesses are encouraged to check whether the payment service provider is appropriately licensed in its home state and that adequate consumer protection is available. There is a risk that the provider, if not regulated by an equivalent body to the Commission, may not be acting in your best interests, and you may be left with limited options to take action against them. In addition, should the provider go out of business, your money may be at risk.