Newsletter 1-2025

In this first quarter of 2025, the publication of the Commission Work Programme clarified the financial services policy priorities and legislative agenda for the year. In this newsletter, we cover key appointments within the cabinet of EU Finance Commissioner Maria Luis Albuquerque, the latest updates on the discussion related to the Payment Services Package within the EU Council, the implications of a report by the European Court of Auditors on EU rules on card fees, and the latest developments on the Digital Euro initiative. We also cover the latest developments in a case before the EU’s Court of Justice pitting Amex & KLM against Visa and Mastercard on the interpretation of the Interchange Fee Regulation.

Some headlines covered are: 

EU Court of Auditors report critical of EU Commission’s actions on card fees

The European Court of Auditors (ECA) released a report evaluating the European Commission’s regulation of card payment fees. The report examines the effects of EU rules on electronic money transfers via mobile devices and digital channels between 2013 and 2023, with a focus on the interchange fee cap and the “surcharge ban” under PSD2. The ECA identified significant gaps in the enforcement of these regulations.

ECB report highlights shift from cash to digital payments

The European Central Bank (ECB) released a report showing that card payments accounted for 70 billion transactions in 2023, making up 54% of all non-cash payments in the EU. In 2022, international card schemes processed 61% of euro area card payments, while national schemes handled only 39%, reflecting a declining domestic share. Currently, only nine national card schemes remain active, each limited to a single Member State, and 13 eurozone countries now rely entirely on international systems.

POLISH EU Council Presidency expects AN AGREEMENT ON PAYMENT SERVICES PACKAGE BY JUNE 2025 

The Polish Council Presidency aims to secure an agreement on the revised Payment Services Directive (PSD3) and Payment Services Regulation (PSR) by the end of its term in June 2025. Poland has proposed additional anti-fraud measures for discussion, including transaction monitoring obligations, a “cooling-off period” for spending limit increases, enhanced data sharing with authorities, and the creation of an EU-wide anti-fraud platform to advise the European Commission and monitor fraud prevention efforts.

EU Council Discusses Digital Euro Revenue Model and Adoption Trends

In the latest EU Council discussions on the Digital Euro, Spain has proposed a new revenue model to advance negotiations. The plan suggests that banks distributing the Digital Euro receive revenue similar to debit card transactions without scheme fees. It also calls for capping payment service provider (PSP) and merchant fees for five years to collect data for a long-term framework, including a 0.2% cap on inter-PSP fees and a “no worse-off clause” for merchants. Additionally, Spain advocates for a “preparedness-by-design” approach to enhance payment resilience, including a default offline spending limit for essential purchases. While no immediate agreement is expected, these discussions will shape the Digital Euro’s regulatory framework.

To read the full text, see the link below:

CPS Newsletter Q1 2025_Final

Swedish version:

CPS Nyhetsbrev Q1 2025_Sv