In Part 2 of Schedule 1 to the Payment Services Regulations (S.I. 2017/752) (activities which do not constitute payment services), after paragraph 2 insert—
“3(1)The provision of cash otherwise than through an automatic teller machine does not constitute a payment service where—
(a)there is a transfer of a corresponding amount from a payment account held by the recipient of the cash to a relevant person, and
(b)the payment account is not provided by a relevant person.
(2)In sub-paragraph (1), “relevant person” means—
(a)where the cash is provided by a person (“P1”) through one or more persons acting on P1's behalf, P1 and each person acting (directly or indirectly) on P1's behalf;
(b)where the cash is provided by a person (“P2”) otherwise than on behalf of another person or through one or more persons acting on P2's behalf, P2.
(3)The execution of the transfer referred to in sub-paragraph (1)(a), and other services enabling that transfer, are not excluded from the meaning of payment services by this paragraph.”