The „European Passport“

Payment services and e-money business can basically be provided across national boundaries. Of particular significance in that respect is the so called “European Passport”. 

The “European Passport” allows companies domiciled in another member state of the European Economic Area to provide payment services or emit e-money without having to apply for a licence with the BaFin under section 8 or 8a ZAG in Germany. A corresponding licence granted by the competent supervisory authority in the company’s state of origin is sufficient(see section 26 ZAG).

Likewise, companies domiciled in Germany may provide payment services or emit e-money in the member states of the European Economic Area based on the licence granted by the BaFin under section 8 or 8a ZAG (see section 25 ZAG).

Companies domiciled outside the European Economic Area do not have the possibility of invoking the “European Passport” for doing business in Germany. However, these companies can establish a branch in Germany and provide payment services or emit e-money via that branch. In such a case, though, the company operating through such a branch has to apply for a licence from the BaFin under section 8 or 8a ZAG for the branch (section 27 ZAG).