BNP Paribas is introducing a service that helps e-commerce sites and other online marketplaces bring their financial transactions into compliance with French regulations.
When an online marketplace carries out collection transactions on behalf of one of its retailers, it is basically providing two distinct services: taking in payment orders and executing bank transfers linked to a paying account.
However, under an EU Directive, such payment services can only be carried out by an authorised payment services provider - to protect sellers and purchasers should the marketplace operator file for bankruptcy after collecting the funds.
To help solve this problem, BNP Paribas is offering to confer agency status on major online marketplaces, enabling them to benefit from its banking licence and ensure compliance with French Prudential Supervision and Resolution Authority rules.