The Payment Services Regulations 2017

Additional activities

32.—(1) Authorised payment institutions and small payment institutions may, in addition to providing payment services, engage in the following activities—

(a) the provision of operational and closely related ancillary services, including—

(i) ensuring the execution of payment transactions;

(ii) foreign exchange services;

(iii) safe-keeping activities; and

(iv) the storage and processing of data;

(b) the operation of payment systems; and

(c) business activities other than the provision of payment services, subject to any relevant provision of EU or national law.

(2) Authorised payment institutions and small payment institutions may grant credit in relation to the provision of the payment services specified in paragraph 1(d) or (e) of Schedule 1 (execution of payment transactions where funds are covered by a credit line, issuing payment instruments or acquiring payment transactions) only if—

(a) such credit is ancillary and granted exclusively in connection with the execution of a payment transaction;

(b) such credit is not granted from the funds received or held for the purposes of executing payment transactions;

(c) in cases where such credit is granted by an authorised payment institution exercising its passport rights, there is an obligation upon the payment service user to repay the credit within a period not exceeding 12 months; and

(d) in relation to an authorised payment institution, in the opinion of the FCA the institution’s own funds are, and continue to be, adequate in the light of the overall amount of credit granted.