Mike Ayres – Financial Services Specialist
The Financial Services sector is full of technical abbreviations, so we’ve taken a moment to review some of the common terminology used in the sector to help you make sense of lingo. We’ll continue to review and add to this list to ensure you’re always up to date.
Common Financial Services Abbreviations
PI – Payment Institution
A class of firms authorised or regulated to provide payment services.
Authorised PI – Authorised Payment Institution
PSPs not regulated as banks.
SPI – Small Payment Institution
Eligible if average payment transactions turnover does not exceed €3 million per month. Cannot passport across EEA or provide AIS or PIS.
European Directive that sets out the regulations for firms that provide payment services.
PSR – Payment Services Regulations
UK’s interpretation of PSD 2 that brings it into law.
2EMD – 2nd E-money Directive
European Directive that sets out the regulations for firms that provide e-money services.
EMR – Electronic Money Regulations –
UK’s interpretation of 2EMD that brings it into law.
PSP – Payment Service Provider
Any firm providing payment services. Includes Authorised PIs, Small PIs, EEA PIs or SPIs, Credit institutions, E-money issuers, the Post Office, the Bank of England (as well as other EEA central banks) and the European Central Bank.
PISP – Payment Initiation Services Provider
Businesses that contract with online merchants to enable customers to purchase goods or services through their online banking facilities, instead of using a payment instrument or other payment method.
AISP – Account Information Service Provider
a) provide users with an electronic “dashboard” where they can view information from various payment accounts in a single place
b) use account data to provide users with personalised comparison services supported by the presentation of account information
c) businesses that, on a user’s instruction, provide information from the user’s various payment accounts to both the user and third-party service providers such as financial advisors or credit reference agencies.
RAISP – Registered Account Information Service Provider
Firms only providing Account Information Services, may passport across the EEA.
Authorised EMI – Authorised Electronic Money Institution
E-money issuers not regulated as banks.
Small EMI – Registered Electronic Money Institution
Eligible if the average monthly total of payment transactions does not exceed €3 million on a rolling 12-month basis. Cannot provide AIS or PIS.
FSR – Financial Services Register
All firms authorised or registered in the UK along with the permissions they have and various other useful information.