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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
We have a good environment to promote more offers for payment services. The regulation accepts any kind of payment service in case of the banking companies or regulated electronic money companies. In case of non-banking companies, they need to obtain a license as electronic money company. The provider of the sole electronic platform to allow those payment services is not a regulated company. In this last case, the providers need to follow the general contracts regulation to avoid any breach of the law, by respecting the will to sign contracts, the rights for consumers and the right to be informed about the hired services.
Legal affairs
Obligations and requirements to provide payment services or ancillary services described above
Electronic payment services are allowed for banking and financial companies. Such banking companies do not need any additional license. For a new company, it will first need to be incorporated as an electronic money company, by obtaining a license before the Peruvian Banking Regulator, the Superintendence of Banking, Insurance and Pension Funds Administrators called hereinafter as “SBS”. The license cost could vary, depending on the law firm fees, and could cost USD30,000 and take 12 months approximately. The required minimum capital for a new company equals to USD700,000.
Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area
The sole Regulator authorised to approve the operating license is the SBS. The Data Protection Agency is competent for the data privacy rights during the existence of the company.
Economic conditions
Market size for payment services and biggest payment service providers
There is always a market for this sort of companies in Peru. Our country still faces the need to increase the financial services to be provided by the market, even more after the Covid-19 pandemic.
We have four (4) electronic money companies in addition to the banking companies. The biggest player in the market is BCP – Banco de Credito del Peru, which is a Peruvian financial group called Credicorp. BCP Group mostly counts with Peruvian capital and Peruvian financial sources. It has a presence outside Peru in Bolivia, Chile, Colombia, Panama, and the United States of America.
Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area
N/A.