PART 5Regulation of payment systems

“Payment system” etc

42Participants in payment systems etc

(1)

This section applies for the purposes of this Part.

(2)

The following persons are “participants” in a payment system—

(a)

the operator of the payment system (see subsection (3));

(b)

any infrastructure provider (see subsection (4));

(c)

any payment service provider (see F1subsections (5) and (5A)).

(But see also subsection (8).)

(3)

“Operator”, in relation to a payment system, means any person with responsibility under the system for managing or operating it; and any reference to the operation of a payment system includes a reference to its management.

(4)

“Infrastructure provider”, in relation to a payment system, means any person who provides or controls any part of the infrastructure used for the purposes of operating the payment system.

(5)

“Payment service provider”, in relation to a payment system, means any person who provides services to persons who are not participants in the system for the purposes of enabling the transfer of funds using the payment system.

F2(5A)

“Payment service provider” in relation to a payment system that includes arrangements using digital settlement assets means—

(a)

a person responsible for managing the issuance and redemption of digital settlement assets;

(b)

a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access);

(c)

a digital settlement asset exchange provider;

(d)

a person who—

(i)

sets rules, standards, or conditions of access or participation in relation to the system, or

(ii)

provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to the system.

(6)

A payment service provider has “direct access” to a payment system if the payment service provider is able to provide services for the purposes of enabling the transfer of funds using the payment system as a result of arrangements made between the payment service provider and the operator of the payment system.

(7)

Any reference to participation in a payment system is to be read in accordance with this section, and in particular—

(a)

in the case of an operator of a payment system, includes a reference to developing the system, and

(b)

in the case of a payment service provider with direct access to a payment system, includes a reference to entering into an agreement with a person to enable the person to become a payment service provider in relation to the system.

(8)

The Bank of England is not to be regarded as a participant of any kind in any payment system.