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FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.
For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.
Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.
Introduction
Attitude of the country towards modern payment services
The social and political climate is rather neutral on these kind of services.
Legal affairs
Obligations and requirements to provide payment services or ancillary services described above
Under the Credit Institutions Act, the provision of payment services and the issuance of e-money in a “business-like manner” (as defined below) in the territory of Hungary is subject to regulatory licensing and supervision by the Hungarian National Bank (MNB). Firms being resident and holding a payment services licence in an EU member state may provide payment services in Hungary by way of passporting their relevant licence into Hungary or by way of establishing a branch in Hungary. A third country service provider licensed in its home jurisdiction may provide payment services in Hungary through a branch or subsidiary established in Hungary. The branch or subsidiary must obtain a local Hungarian license from MNB. Please note that it shall be examined carefully on a case-by case basis whether (i) the service provided qualifies as payment or other regulated service; (ii) the service is provided in the territory of Hungary; and (iii) the service is provided in a business-like manner.
If a licence will need to be obtained for payment services from the Hungarian regulator, then the fee for the issuance of such licence will be around EUR 2’900. Further, Hungarian resident payment service providers and branches of third country payment service providers shall pay a yearly supervisory fee of approx. EUR 790 + 6% of their regulatory capital respectively. The amount of the yearly regulatory fee in case of branches of EU member states is approx. EUR 790 + 0,15% of their balance sheet total.
The minimum initial capital requirement of a payment service provider company is approx. EUR 100’000. If the service provider is only providing money transfer services through telecommunication, digital or other information technology devices, then the minimum initial capital of the company amounts to only EUR 39’500 and in case of electronic money issuers the minimum initial capital is EUR 263’200.
Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for payment services and biggest payment service providers
No such information has been published officially, but the Hungarian payment service market is relatively small. The biggest payment service providers in this field recently have included: Wise, Apple Pay, Google Pay, OTP/Simple, PayPal, Revolut, iCsekk, Barion, and Alipay.
Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area
N/A.