Worldline - 2020 Universal Registration Document
DESCRIPTION OF THE GROUP’S BUSINESS Worldline: a regulated Group
Under this regulation, the following activities, in which the Group participates 1 , are considered to be payment services: Execution of payment transactions, including transfers of ● funds on a payment account with the user’s payment service provider or with another payment service provider: a) Execution of direct debits, including one-off direct debits, b) Execution of payment transactions through a payment card or a similar device, c) Execution of credit transfers, including standing orders; Execution of payment transactions where the funds are ● covered by a credit line for a payment service user: a) Execution of direct debits, including one-off direct debits, b) Execution of payment transactions through a payment card or a similar device, c) Execution of credit transfers, including standing orders; Issuing of payment instruments and/or acquiring of ● payment transactions; Money remittance; ● Payment initiation services; ● Account information services. ● In order to be able to carry out its regulated activities, Worldline NV/SA, a subsidiary of the Group located in Belgium, possesses a payment institution license in Belgium, and is allowed to carry out the services described above. Worldline NV/SA’s license in Belgium has been “passported” to Austria, the Czech Republic, Germany, Spain, France, the United Kingdom, Italy, Luxembourg, the Netherlands, Norway, Poland, Slovakia, Bulgaria, Croatia, Denmark, Estonia, Finland, Iceland, Lithuania, Malta, Romania, Slovenia, Greece, Ireland, Latvia, Portugal, Sweden, Cyprus and Hungary. Worldline NV/SA has also a subsidiary in the Czech Republic and a branch in Slovakia. The European Union member states’ national regulatory authorities may impose stricter prudential regulations in light of the specific activity of the regulated payment institution. Worldline NV/SA has a “hybrid” license as a result of its payment terminal manufacturing business. Accordingly, this entity is subject to more extensive prudential constraints, especially as pertains to own funds requirements. For example, Worldline Group regulated entities were required to have close to € 70 million in own funds during 2020 (of which c. 40% of it for Worldline NV/SA). As a provider of these services, the Group is required to comply with certain administrative obligations and provide ancillary services, such as issuing confirmation receipts for
transactions (in paper or electronic format), providing installation services, monitoring and maintaining hardware and software or developing client-oriented applications for terminals. The Group is subject to these requirements either as a result of its carrying out the activities of a payment institution, or in its role as subcontractor carrying out the activities of credit institutions. As a subcontractor, the Group acts as a processor on behalf of credit institutions and must therefore provide its services in compliance with the regulations applicable to credit institutions. For a description of the services that credit institutions outsource to the Group (for which the Group does not require a license), see Section C.5.2 of this Universal Registration Document. Finally, the Group has indirect access to the interbank payment systems, in order to carry out payment transactions and clearing operations processed in the context of the Group’s Commercial Acquiring activities. The Group is thus subject to certain specific operational regulations developed by the companies that manage these interbank systems, such as STET in France and in the Netherlands, the automated Clearing House is processed by equensWorldline which is supervised by the Dutch Central Bank. The Group has implemented an internal monitoring system to follow legislative and regulatorydevelo pments applicable to its activities. institutions can also be authorized to provide payment services. Like all activities exercised by credit institutions, these services can be outsourced, meaning that the institution entrusts to an external service provider, the running of its operational activities. In France, such outsourcing activities are regulated by CRBF Regulation 97-02 of February 21, 1997 relating to internal controls within credit institutions and investment firms. Under the provisions of this regulation, a credit institution’s external service provider must comply with the credit institution’s established controls procedures in respect of services provided and must communicate any information that could have an impact on its ability to undertake the functions that have been outsourced to it. For example, the Group issues payment cards and bank statements on behalf of its credit institution clients. Similarly, a licensed payment institution may outsource some of its activities provided it complies with its internal controls procedures and provided it obtains the prior authorization from the competent regulator should this outsourcing be critical. Regulations applicable to C.4.1.2 outsourced credit and payment institution activities
1 Worldline NV/SA has obtained the license for Account Information Services (AIS) and Payment Initiation Services (PIS) but the Company has not yet started to deploy these services at this stage.
Universal Registration Document 2020
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