PROGRAMME FOR NON-CASH PAYMENTS DEVELOPMENT IN POLAND FOR ...

PROGRAMME FOR NON-CASH

PAYMENTS DEVELOPMENT IN

POLAND FOR THE YEARS 2014-2020

Part 3

Recommendations for the Government

Warsaw, December 2013

2 | S t r o n a

Table of Contents

List of abbreviations ................................................................................................................................ 4

Introduction ............................................................................................................................................. 5

Specific Objective 1 ‒ Reduction of financial exclusion ........................................................................ 7

Action 1.1: Taking measures aimed at opening and maintaining free-of-charge or low-cost payment

accounts and commencement of their use by the elderly (above 65 years of age), by the youngest as

well as people not using banking services, especially people with low income, inhabitants of small

towns or villages, the disabled and the unemployed ........................................................................... 7

Action 1.2: Introducing required changes in current legal regulations and regulations promoting the

use of non-cash payments .................................................................................................................... 8

Action 1.3: Actions for the replacement of cash service points and performance and acceptance of

payments in cash in public sector institutions and economic entities, in particular at mass creditors,

by non-cash payments ......................................................................................................................... 9

Specific Objective 2 ‒ Breaking mental barriers and changing of payment habits of consumers,

enterprises and public institutions towards greater use of non-cash payments. .................................... 10

Action 2.1: Educational and promotional actions in non-cash payments aimed at consumers,

entrepreneurs and public institutions. Enhancing knowledge on rights concerning non-cash payment

instruments and banking payment services among bank clients ....................................................... 10

Action 2.4: Introducing required changes in current legal provisions and regulations promoting the

use of non-cash payments .................................................................................................................. 11

Specific Objective 3 ‒ Popularisation of payment infrastructure and non-cash payment instrument

acceptance network ............................................................................................................................. 122

Action 3.1: Facilitating the development of the acceptance market through legal regulations – an

analysis of applicable legal regulations ............................................................................................. 13

Action 3.5: Expansion of the acceptance network of local government payments which may be

made only in non-cash form (e.g. subsidies, payment of grants, social benefits) ........................... 133

Action 3.7: Actions aimed at expanding the ATM network and other customer-operated vending

machines and their functionality ....................................................................................................... 14

Specific Objective 4 ‒ Ensuring security and effectiveness of electronic payment instruments,

expansion of their offer and development of innovative payment instruments ..................................... 15

Action 4.5: Providing technological neutrality of legal regulations concerning payments ............... 15

Specific Objective 5 ‒ Increasing competitiveness on the payment and settlement sservices market .. 17

Action 5.1: Supporting innovative payment schemes aimed at the development of non-cash

payments and competition in the payments market........................................................................... 17

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Action 5.2: Supporting the creation of a pro-innovative and competitive Polish payment ecosystem

– a platform of cooperation of all entities involved in payments ...................................................... 18

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List of abbreviations

BGK – Bank Gospodarstwa Krajowego

BFG – Bank Guarantee Fund

Group – Working Group for the Programme of Non-cash Payments Development

NCF – National Capital Fund

KNF – Polish Financial Supervision Authority

Coalition – Coalition for the Development of Non-cash Payments and Micropayments

MAiC – Ministry of Administration and Digitization

MEN – Ministry of National Education

MF – Ministry of Finance

MG – Ministry of Economy

MNiSW – Ministry of Science and Higher Education

MRR – Ministry of Regional Development

MSW – Ministry of the Interior

NBP – Narodowy Bank Polski

NCN – National Science Centre

PARP – Polish Agency for Enterprise Development

Programme – Programme for non-cash payments development in Poland for the years 2014-2020

UKE– Office of Electronic Communications

UOKiK – Office of Competition and Consumer Protection

ZBP – Polish Bank Association

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Introduction

Chances of success of the Programme prepared under the Coalition depend to a large extent on the

commitment of the Government, government institutions and other public institutions to implement

this programme Despite the fact that the document is intended primarily for entities operating on the

market for payment services, the achievement of the objectives set for the market seems to be

impossible without the cooperation of relevant ministries and other public institutions. Such

cooperation can manifest itself in many ways, more or less formal, or require more active

involvement. The following is a proposal for action by public sector entities, together with an

indication of activities that allow for their implementation. This document is the third, after the

Strategic Document and the Operational Plan for 2014-2016, that together create the Programme for

non-cash payments development in Poland and describes only recommendations for the Government

and state and public institutions marked on the following Map of the Programme.

The Coalition members believe that joint action of both public entities and the private sector will help

to achieve the main objective of the Coalition, which is to promote non-cash payments in Poland.

Recommended actions are not obligatory and should be treated as the expectations of the financial

sector towards the Government, state and other public institutions in terms of changes in applicable

laws relating to the use of non-cash payments, as well as creation of favorable economic and

infrastructural conditions for its development.

Diagram 1. Programme for Non-cash Payments Development in Poland for the Years 2014-2020

Programme for Non-cash Payments Development in Poland for

the Years 2014 – 2020

Part 3 Recommendations for the

Government

Part 2 Operational Plan for

2014-2016

Part 1 Strategic Document

6 | S t r o n a

Diagram 2. Map of the Programme

Cel główny: Upowszechnienie obrotu bezgotówkowego w Polsce

Cel szczegółowy 1:

Ograniczenie wykluczenia finansowego


Przełamanie barier mentalnościowych oraz zmiana przyzwyczajeń płatniczych konsumentów, przedsiębiorstw i instytucji publicznych w kierunku większego korzystania z obrotu bezgotówkowego


Upowszechnienie infrastruktury płatniczej oraz sieci akceptacji bezgotówkowych instrumentów płatniczych


Zapewnienie bezpieczeństwa i efektywności elektronicznych instrumentów płatniczych, poszerzenie ich oferty oraz rozwój innowacyjnych instrumentów płatniczych


Zwiększenie konkurencyjności na rynku usług płatniczych i rozliczeniowych

Działanie 1.1:Podjęcie działań mających na celu otwieranie i prowadzenie bezpłatnych lub tanich rachunków płatniczych i rozpoczęcie korzystania z bezgotówkowych instrumentów płatniczych wśród osób starszych (powyżej 65 roku), wśród najmłodszych a także wśród osób nieubankowionych, w szczególności osób o niskich dochodach, mieszkańców mniejszych miast i wsi, osób z niepełnosprawnością i bezrobotnych

Działanie 2.1:Działania edukacyjne i promocyjne w zakresie obrotu bezgotówkowego skierowane do konsumentów, przedsiębiorców i instytucji publicznych. Poszerzenie wśród tej grupy osób i podmiotów wiedzy na temat bezgotówkowych instrumentów płatniczych oraz usług płatniczych

Działanie 3.1:Wspomaganie przepisami prawnymi rozwoju rynku akceptacji - analiza obowiązujących przepisów prawa

Działanie 3.2:Analiza możliwości, zasadności i konieczności ingerencji regulatora i nadzorcy w rynek akceptacji kart, w szczególności w odniesieniu do podmiotów podlegających i niepodlegających nadzorowi

Działanie 3.3:Aktywizacja akceptantów w zakresie przyjmowania płatności bezgotówkowych

Działanie 3.4:Działania edukacyjne skierowane do szerokiej grupy odbiorców (konsumenci, zainteresowane podmioty komercyjne, media) na temat problematyki funkcjonowania infrastruktury nowoczesnych płatności

Działanie 3.5:Poszerzenie sieci akceptacji płatności samorządowych, które mogą być dokonywane wyłącznie bezgotówkowo (np. dotacje, wypłaty dofinansowań, świadczeń społecznych)

Działanie 3.6:Podjęcie działań edukacyjno-promocyjnych w zakresie usługi cash-back

Działanie 3.7:Działania mające na celu rozwój sieci bankomatów oraz innych urządzeń samoobsługowych i ich zakresu funkcjonalności

Działanie 2.2:Działania dostawców usług płatniczych mające na celu upraszczanie procedur oraz bardziej przyjazne podejście do klienta, poszerzanie stałej relacji z klientem, pozyskiwanie zaufania i jego pogłębianie

Działanie 2.3:Przeprowadzenie pogłębionych badań i analiz w zakresie obrotu bezgotówkowego i upublicznienie ich wyników

Działanie 4.1:Działania edukacyjne oraz promocyjne w zakresie bezpieczeństwa elektronicznych instrumentów płatniczych

Działanie 4.2:Dokonanie analizy dostępnych/oferowanych przez rynek rozwiązań technologicznych (np. przetwarzanie w chmurze) pod kątem ich bezpieczeństwa zarówno dla dostawców jak i beneficjentów usług płatniczych

Działanie 4.3:Wspieranie i promowanie efektywnych dla beneficjentów (klientów indywidualnych i przedsiębiorców) rozwiązań dotyczących płatności

Działanie 4.4:Tworzenie warunków dla powstawania alternatywnych instrumentów płatności bezgotówkowych, w tym wykorzystujących istniejącą infrastrukturę

Działanie 5.1:Wspieranie innowacyjnych schematów płatniczych służących rozwojowi obrotu bezgotówkowego i konkurencji na rynku płatności

Działanie 5.2:Wspieranie utworzenia proinnowacyjnego i konkurencyjnego polskiego ekosystemu płatniczego – platformy współpracy wszystkich podmiotów zaangażowanych w płatności

Działanie 1.2:Wprowadzenie niezbędnych zmian w obowiązujących przepisach prawnych oraz regulacji promujących korzystanie z obrotu bezgotówkowego

Działanie 1.3:Działania na rzecz zastępowania obsługi kasowej oraz dokonywania i akceptowania płatności gotówkowych w instytucjach sektora publicznego oraz w podmiotach gospodarczych, w szczególności u masowych wierzycieli, przez płatności bezgotówkowe

Działanie 2.4:Wprowadzenie niezbędnych zmian w obowiązujących przepisach prawnych oraz regulacji promujących korzystanie z obrotu bezgotówkowego

Działanie 4.5:Zapewnienie neutralności technologicznej przepisów prawnych dotyczących płatności

Działania zawarte w Planie Operacyjnym na lata 2014-2016 i Rekomendacji dla Rządu na lata 2014-2020

Działania zawarte w Planie Operacyjnym na lata 2014-2016

Działania zawarte w Rekomendacji dla Rządu na lata 2014-2020

Legenda:

Specific Objective 1:

Reduction of

financial exclusion


Breaking mental

barriers and changing of

payment habits of

consumers, enterprises

and public institutions

towards greater use of

non-cash payments

Main Objective: Popularisation of non-cash payments in Poland


Popularisation of

payment infrastructure

and non-cash payment

instrument acceptance

network


Ensuring security and

effectiveness of electronic

payment instruments,

expansion of their offer and

development of innovative

payment instruments


Increasing

competitiveness on the

payment and settlement

services market

Action 1.1. Taking measures

aimed at opening and

maintaining free-of-charge or

low-cost payment accounts

and commencement of their

use by the elderly (above 65

years of age), by the

youngest, as well as people

not using banking services,

especially people with low

income, inhabitants of small

towns or villages, the

disabled and the

unemployed

Action 2.1. Educational and

promotional actions in non-

cash payments aimed at

consumers, entrepreneurs and

public institutions. Enhancing

knowledge on non-cash

payment instruments and

payment services among these

groups of people

Action 3.1. Facilitating the

development of the

acceptance market through

legal regulations – an

analysis of applicable legal

regulations

Action 4.1. Educational and

promotional actions on

electronic payment

instrument security

Action 5.1. Supporting

innovative payment

schemes aimed at the

development of non-cash

payments and competition

in the payments market

Action 5.2. Supporting the

creation of a pro-innovative

and competitive Polish

payment ecosystem – a

platform of cooperation of

all entities involved in

payments

Action 4.2. Analyzing

available/offered

technological solutions on the

market (e.g. cloud

computing) with regard their

security for both providers

and beneficiaries of payment

services

Action 3.2. The analysis of

the possibility, validity and

necessity of a regulator’s

interference in the card

acceptance market, relating

especially to entities subject

to and not subject to

supervision

Action 2.2. Measures taken

by payment service providers

aimed at simplifying

procedures and a more

client-friendly approach,

broadening fixed relations

with the client, gaining and

strengthening his trust

Action 1.2: Introducing

required changes in current

legal regulations and

regulations promoting the

use of non-cash payments

Action 1.3: Actions for the

replacement of cash service

points and performance and

acceptance of payments in

cash in public sector

institutions and economic

entities, in particular at mass

creditors, by non-cash

payments

Action 2.3. Conducting in-

depth studies and analyses on

non-cash payments and

making the results public

Action 2.4: Introducing

required changes in current

legal provisions and

regulations promoting the use

of non-cash payments

Action 3.3. Activation of

acceptors relating to

acceptance of non-cash

payments

Action 3.4. Educational actions

aimed for a broad group of

respondents (consumers,

interested commercial entities

and media) on the issue of the

functioning of modern

payment infrastructure

Action 3.5. Expansion of the

acceptance network of local

government payments which

may be made only in non-

cash form (e.g. subsidies,

payments of grants, social

benefits)

Action 3.6. Taking

promotional and educational

actions on cash back service

Action 3.7. Actions aimed at

expanding the ATM network

and other customer-

operated vending machines

and their functionality

Action 4.3. Supporting and

promoting solutions

regarding payments effective

for beneficiaries (individual

clients and entrepreneurs)

Action 4.4. Creating

conditions for the emergence

of alternative non-cash

payment instruments,

including those using the

existing infrastructure

Action 4.5: Providing

technological neutrality of

legal regulations concerning

payments

Legend

Actions Contained in the Operational Plan for 2014-2016 and

Recommendations for the Government for 2014-2020

Actions Contained in the Operational Plan for 2014-2020

Actions Contained in Recommendations for the Government

for 2014-2020

7 | S t r o n a

Specific Objective 1 ‒ Reduction of financial exclusion

Surveys of payment habits of Poles, conducted by Narodowy Bank Polski, have shown that the biggest

obstacle to growth in number of new users of banking services of different social groups is generally

the lack of need for an account, lack of income and savings, attachment to possession and payment in

cash, and the conviction of the high cost of banking services. This means that the most financially

excluded are social groups such as students, pensioners, the unemployed, and people with low income

or the disabled. Deprivation of the possibility of using banking services also implies the lack of the

possibility of using non-cash payment instruments, which in turn can lead to the alienation of these

groups in an increasingly digital society.

To prevent this state, as support of the activities described in the Programme, it is proposed that the

following actions will be implemented by public sector entities:

Action 1.1: Taking measures aimed at opening and maintaining free-of-charge or low-

cost payment accounts and commencement of their use by the elderly (above 65 years of

age), by the youngest, as well as people not using banking services, especially people with

low income, inhabitants of small towns or villages, the disabled and the unemployed

On 8 May 2013, the European Commission presented a proposal for a Directive on the comparability

of fees related to payment accounts, payment account switching and access to payment accounts with

basic features, thereby starting the first phase of consultations of the directive.1 The provisions of the

future Directive proposed by the Commission concentrate on three areas:

access to a payment account: create the possibility of opening a payment account in a Member

State other than that in which they live for EU consumers; furthermore the provisions allow

every citizen, regardless of his financial situation, to open an account that enables him to

undertake basic transactions, such as receiving income, pensions or social benefits or paying

utility bills.

comparability of fees charged on consumer’s payment accounts: facilitating the comparison of

fees charged by the banks and other payment service providers in the EU;

switching a payment account: the establishment of a clear and quick procedure for consumers

wishing to change the payment service provider, which is to operate payment accounts.

1 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0266:FIN:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0266:FIN:EN:PDF

8 | S t r o n a

It is important that Polish government authorities, including the Ministry of Finance, regularly

participate in consultations of the project, where the current situation on the Polish market should be

taken into account. It must be considered, among others, that studies conducted by the Coalition and

the ZBP indicate that already there are accounts in Poland that are compliant with the requirements of

an account with basic functionalities. Imposing the obligation of payment service providers, including

banks, to for example offer a new type of an account would not only be pointless but also expose

providers to unnecessary significant costs. The final wording of the Directive should take that fact into

account and provide an option of using existing products to fulfill requirements stated in the act.

After the release of the Directive, state authorities should implement it into national law in a timely

manner, after wide consultations with the payment service providers’ community, which will ensure a

smooth and rational fulfilling of the objectives that will be set in the future Directive. This will ensure

that payment service providers have clear legal conditions that allow for the effective implementation

of the law implementing the Directive, and thus achieve its objectives.

In should be noted, however, that the mere creation of a basic account, without adequate support

infrastructure to broaden access to the computers for people without such equipment at home, is less

likely to reach the communities and social groups for which this regulation is being prepared.

Therefore, it seems advisable to take following actions by units of public administration and local

governments:

Proposed scope and schedule of implementing Action 1.1:

Item Activities Recipient of the

recommendation

1. Creating computer workstations with Internet access or other

devices enabling making a transfer in municipal offices, post

offices and local community centers

Government, local governments

2. Conducting a programme by local governments to equip the

disabled and the elderly with computer workstations or other

remote means enabling the use of electronic channels, including

electronic banking

Government, local governments

3. Creating platforms enabling remote regulations of public payments Government

4. Increasing the availability to broadband Internet MAiC

Action 1.2: Introducing required changes in current legal regulations and regulations

promoting the use of non-cash payments

One of the main objectives of the Programme is to build a proper legal environment conducive to

development and popularisation of non-cash payments. Applicable law regarding the form of making

(e.g. official fees) and receiving various benefits and claims (e.g. remuneration or tax refunds)

9 | S t r o n a

generally provide a cash payment, occasionally allowing non-cash settlement only after the fulfillment

of additional conditions, such as the consent of the beneficiary or his request. Therefore, it is

appropriate to analyze and revise existing laws regarding the form of payment and receipt of various

types of benefits and receivables towards complete liquidation of preference for cash. In a modern and

increasingly digital society, the principle should be to make any kind of payment in non-cash form and

cash payments should be an alternative to electronic payments.

To accomplish this task, many of the existing laws should be analyzed and be subject to appropriate

amendments, especially those related to labour law, the payment of pensions, premiums for social

insurance of farmers, as well as payment of fees or other monetary claims, or making payments in

connection with business activity. In addition, the law makers should also make provisions for the

basic account, or facilitate the access to payment services for people with disabilities.



recommendation

1. Preparing proposals of changes in the Labour Code and regulations

concerning social insurance and social assistance on the use of non-

cash money transfers as the preferred form of settlement, while

retaining the possibility of paying out the claims in cash

Relevant ministries

2. Introducing relevant regulations concerning the basic account (in

the case of issuing a Directive in this respect)

MF

Action 1.3: Actions for the replacement of cash service points and performance and

acceptance of payments in cash in public sector institutions and economic entities, in

particular at mass creditors, by non-cash payments

There is no doubt that the introduction of the possibility of non-cash settlements for offices and public

authorities can make a significant contribution to reducing the number of cash service points receiving

cash payments still functioning in these offices. This primarily means a reduction in office cost

associated with cash handling. This issue also applies to large businesses, who are creditors of mass

payments associated with running a household. For those entities, the non-cash payment method also

means faster access to funds that represent payment for rendered services.

Not wishing to impose a particular form of payment contrary to the wishes and habits of the

population, as well as attachment to cash observed in certain social groups, it seems that the most

reasonable solution would be to amend the rules promoting cash payments towards at least equal

treatment of both settlement forms ‒ cash as well as non-cash settlements.

10 | S t r o n a

Another important issue is the possibility of introducing the obligation to pay remuneration for

employees in non-cash form in both state and local government administration. Such action would

have certainly both an educational and promotional character. Importantly, it is not in conflict with the

applicable provisions of the Labour Code concerning the payment of wages. According to the Code,

the payment of wages shall be made in cash, but the payment may be made also in another form,

provided it is used as a collective agreement or an employee previously consented to this form of

settlement with the employer.



recommendation

1. Introducing recommendations concerning paying out remunerations

or other benefits in non-cash form to employees in state and local

government institutions

Relevant ministries

2. Developing the mechanisms of non-cash payment of benefits to the

citizens by public institutions

Relevant ministries

Specific Objective 2 ‒ Breaking mental barriers and changing of payment habits of

consumers, enterprises and public institutions towards greater use of non-cash

payments

Another very important cause, being also a barrier to the development of non-cash payments, is the

mental beliefs and habits of consumers, entrepreneurs and public institution employees to use specific

payment forms. In order to change them, the following actions are proposed:

Action 2.1: Educational and promotional actions in non-cash payments aimed at

consumers, entrepreneurs and public institutions. Enhancing knowledge among bank

clients concerning laws on non-cash payment instruments and banking payment services

Creating conditions for the development of cashless transactions should be regarded as the sine qua

non for the success of the strategy. Educational activities should be carried out as widely as possible ‒

include all age and professional groups. Lack of the conviction of potential users about the security of

use of electronic instruments, as well as lack of knowledge about their advantages cause resentment,

even if the other conditions necessary for the development of cashless transactions have been fulfilled.

11 | S t r o n a

Taking into account the results of these earlier surveys conducted for NBP, consumer behaviour is

passed from generation to generation. In this context, education of adolescents becomes very

important, especially of primary and secondary education youths. The educational campaign should

involve both financial institutions and the administration, also at the local level, which, as it seems,

today itself needs more information and some change of fixed action patterns. An important force

seem to be the media that perhaps, in addition to information regarding negative events (e.g. theft from

the card, a bank account, problems with the computer system of the bank, etc.), should also show how

a small percentage of negative events takes place in a giant transaction volume, and how modern and

safe the banking system is in Poland.



recommendation

1. Creating favorable contidions for the development of non-cash

payments

Relevant ministries

2. Preparing and conducting a broad, nation-wide educational

campaign on the security of funds deposited in bank accounts

BFG

In cooperation with NBP and

ZBP

3. Promoting and supporting actions among local governments

aimed at introducing the option of non-cash service for citizens, or

its improvement

Relevant ministries, local

government units, provincial

governors

4. Conducting substantive training for local community leaders on

basic advice on financial inclusion of citizens

Relevant ministries, local

governments

5. Reviewing educational programmes and school handbooks for

issues regarding economics and finances, aimed at broadening

knowledge about modern payment methods

MEN with ZBP and NBP

6. Including “Recommendations for the Government” during the

update of the National Euro Changeover Plan, in particular the

National Communication Strategy

MF

Action 2.4: Introducing required changes in current legal provisions and regulations

promoting the use of non-cash payments

The limit for cash transactions set in the Act on the Freedom of Economic Activity at the equivalent of

EUR 15,000 seems to be far too high in the realities of the Polish financial system.

Taking into account the obligation of a business entity to own a bank account, it would be wise to

consider what to do to cause most of the payments made by the entrepreneur to be in non-cash form. A

significant reduction of this limit, for example to the amount of EUR 1,000 will surely contribute to

12 | S t r o n a

the increase in the volume of non-cash payments and in turn to reduce the gray zone. Introducing such

limits for natural persons or the obligation of non-cash payments when exceeding a specified amount

limit in the case of acquiring luxury goods need to be considered. A non-cash payment could also be

used by natural persons when regulating liabilities under the provisions of agreements providing for

periodical benefits. There are also no provisions regarding civil law contracts, that is tenancy or lease,

the revenues of which are subject to tax which is often not executed, which greatly expands the gray

zone.

It seems, however, that both consumer and entrepreneur groups could be subject to making non-cash

payments in the case of liabilities arising from civil law. However, removing legal barriers that still

exist in some acts, providing for a closed catalogue of payment forms for individual reasons of

payments must follow suit, as well as preparing the administration for the switch to non-cash

payments.

The introduction of the above mentioned obligations or restrictions does not appear to be inconsistent

with applicable law. From the point of view of the state, this brings benefits in the form of a reduction

of the gray zone (increasing budget revenues), as well as the limiting of cash transactions, which in

turn has an impact on reducing administration costs (costs of cash handling).

Proposed scope and schedule of realizing Action 2.4:


recommendation

1. Lowering the amount limit above which there is an obligation to

make payments in non-cash form by entrepreneurs

Relevant ministries

2. Analyzing recommendations for the introduction of the amount

limits for cash payments made by natural persons and

implementation of relevant provisions in this matter to applicable

law

Relevant ministries

3. Analyzing recommendations concerning the possibilities of

limiting cash transactions according to payment type and

transaction volumes. Inserting relevant provisions in this matter to

applicable law

Relevant ministries

Specific Objective 3 – Popularisation of payment infrastructure and non-cash payment

instrument acceptance network

Ensuring the appropriate level of development of the payment infrastructure is one of the basic

conditions for the popularisation of non-cash payments. Only broad access to solutions enabling the

13 | S t r o n a

use of non-cash payments can provide the aforementioned change in habits and mentality barriers in

the society, restricting the use of non-cash instruments.

Action 3.1: Facilitating the development of the acceptance market through legal

provisions – an analysis of applicable legal regulations

Ensuring specific incentives to install devices accepting payments with non-cash payment instruments

is particularly important in this context, similarly as with the situation with fiscal devices (cash

registers and printers). These incentives may range from refunding the costs of the device or granting

specific tax benefits for entities actively participating in the building of the non-cash payment

acceptance infrastructure.

An efficient implementation of changes firstly requires an inventory of areas, where modifying

existing provisions may facilitate the development of non-cash payments. These would include,

among others, tax benefits for entities actively participating in the development of non-cash payments,

tax reliefs for the purchase of relevant devices or the option to introduce the obligation of non-cash

settlements for some settlements of state bodies with the citizens, or employees with employers.


Item Activities Recipient of the recommendation

1.

Introducing assistance/incentives such as tax reliefs for

expenditure on infrastructure of the acceptors and entities

constructing the infrastructure, associated with installation of

terminals or creation of new acceptance points

Relevant ministries

2. Analyzing proposals of changes regarding the regulation of

card acceptance market and their possible adoption in Polish

law

Relevant ministries

3. Introducing provisions enabling the integration of fiscal cash

registers with a payment terminal

Relevant ministries

Action 3.5: Expansion of the acceptance network of local government payments which

may be made only in non-cash form (e.g. subsidies, payment of grants, social benefits)

It is equally important to ensure the widest possible use of non-cash settlements in all the settlements

between the state, acting through the administration and citizens. This applies to remunerations and

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pensions, social benefits, subsidies, and all forms of compensation and reimbursement of expenses,

paying taxes, etc. Citizens’ settlements with local governments should be made in a similar manner.

Preference for non-cash repayment of liabilities to local governments and non-cash settlement of local

authorities with citizens are areas that can and should be regulated by appropriate legislative

initiatives. Their importance to promote safe non-cash settlements cannot be overstated.

Without appropriate action by the government, developing non-cash payments and providing the

appropriate infrastructure will be significantly impeded. Without that, it will be impossible to reduce

the cost of cash handling and eliminate the gray zone.



1. Identifying payment types, where introducing the obligation to

pay in non-cash form would be socially and economically

justified

Local governments and their

associations and local government

units

2. Verifying compliance of an introduction of the obligation to

make payments in non-cash form with applicable provisions

Local governments and their

associations

3. Preparing proposals of amendments to legal regulations Relevant ministries

Action 3.7: Actions aimed at developing the ATM network and other customer-operated

vending machines and their functionality

In addition to the development of traditional infrastructure to handle card payments, customer-

operated machines will also be important for the popularization of non-cash settlements. They will

allow users to have access to goods and services outside working hours of the establishments. The

most common financial self-operated device today is the ATM. The number of such devices per

million inhabitants in Poland is still significantly lower than in other European Union countries. One

should also pay attention to the increasingly widespread use of self-service machines in the daily life

of citizens, such as ticket distribution for public or railway transport. Appropriate action on the part of

government authorities can greatly assist this process. Implementing the recommendations of the

Payment System Council should also help achieving that goal; the Council will discuss the issue of

ATM fees, at the request of the Ministry of Finance, in 2014.

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1.

Implementing the recommendations of the Working Group for

ATM fees attached to the Payment System Council regarding

possible regulatory actions

Relevant ministries

Specific Objective 4 ‒ Ensuring security and effectiveness of electronic payment

instruments, expansion of their offer and development of innovative payment

instruments

Action 4.5: Providing technological neutrality of legal regulations concerning payments

The dynamic development of modern technologies results in significant changes in the area regulated

by law. Indicating specific technological solutions in the legislation of (e.g. electronic purses, etc.)

determines their use in the provision of payment services. Undoubtedly, this is a significant barrier to

the introduction of new services that could play an important role in popularizing modern payment

instruments, and thus influence the development of non-cash payments in Poland. The development of

technologies is also an increase in threats. Providing “technological neutrality” of the law will

facilitate and shorten the time needed to introduce measures ensuring a higher level of security. The

optimal course of action in order to ensure the expected popularisation of innovative payment services

is to define only basic requirements for technological solutions in the legislation. In the long term, this

will allow for the efficient adjustment of payment services offered to the expectations of customers

and therefore in increase the number of users and transactions carried out in non-cash form. To

achieve the above, it is necessary to review the provisions in identifying possible barriers to market

entry or provide payment services resulting from the imposition by the legal provision of certain

technological solutions in this regard. The natural consequence is the need to develop good practices

and appropriate procedures to avoid the introduction of legislation regarding payment provisions that

impose technological solutions.

Implementation of these measures will be possible through effective exploitation of the potential of

experience and technical knowledge of industry circles and specialized units in the process of creating

new legislation. It should be borne in mind that not only a referral for an opinion within the framework

of public consultation of draft regulations should be done. It is essential to thoroughly examine the

comments, and in the case of their subtraction, the reasons for that decision. Such an approach, while

respecting the principles of dialogue, provides a better quality of law, and thus more dynamic

development in the area of payment services. Such a dialogue will result in a better understanding of

each other's positions and finding most effective and safe solutions. Therefore, from the perspective of

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the current situation, it is important to change the approach to public consultations of draft legislations

(broader consultation, a deeper analysis of the content of the comments and the reasons for rejection of

comments).

In the face of the entire area described above, the integral issue is the solution to the issue of electronic

identity and authentication. The problem is also important in the context of the draft Regulation of the

European Parliament and of the Council on electronic identification and trust services with respect to

electronic transactions in the internal market (e-IDAS). The implementation of a coherent and

comprehensive solution for e-identity and authentication is an important factor for the development of

modern and user-friendly payment services. Not only will it facilitate the relationship between citizens

and public institutions, but also will give a new impulse for the development of payment services. The

principal advantage will be the introduction of a uniform standard for the confirmation of the client’s

e-identity. Cooperation with entities or institutions with appropriate knowledge and experience is

important to achieve effective solutions in terms of technology and cost-effectiveness in this respect.

For effective implementation and popularisation of innovative payment services is necessary to

provide access to Internet. Therefore, an important complementary activity is to increase the

percentage of households having access to broadband Internet. It is so, because it guarantees the

availability of modern payment services to potential users. In should be remembered that the data

communication network is an important channel for operating modern payment services.

The above mentioned activities should be treated as a coherent and correlated set of actions aimed at

ensuring the security and effectiveness of electronic payment instruments, broadening their offer and

developing innovative payment instruments. Well written law created in dialogue with entities having

the necessary knowledge and experience, and addressing the issue of e-identity and authentication are

the conditions that, when fulfilled, will effectively achieve the objective.



recommendation

1. Performing a review of regulations for identification of possible

barriers of entry to the market or provision of payment services

resulting from the imposition by the legal provision of certain

technological solutions in this regard

Relevant ministries responsible

for individual legal acts, with

the substantive support of

NBP/ZBP

2. Avoiding the introduction of provisions enforcing technological

solutions into payment regulation legislation

Relevant ministries

3. Improving the process of public consultations considering draft

legislation (broader scope of consultations, deeper analysis of the

comments provided and stating reasons for comment rejection).

Relevant ministries

4. Resolving the issue of electronic identity and authorization

MAiC

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Specific Objective 5 ‒ Increasing competitiveness on the payment and settlement

services market

Action 5.1: Supporting innovative payment schemes aimed at the development of non-

cash payments and competition in the payments market

The necessary condition for the development of non-cash payments is to establish a framework for

competitiveness and stimulate in in the payment services and clearing market, which will provide

optimal selection of payment services to users (consumers and acceptors), as the resultant of quality,

including added value and price. The mere availability of innovative technology and the freedom of

choice of infrastructure solutions is not sufficient for the operation of a fully competitive, yet effective

and consistent market, because the multiplicity of possible solutions does not guarantee by definition

the optimal adaptation of solutions to the needs of users, nor does it guarantee the popularisation to the

extent that will provide a significant contribution to the increase in non-cash payments.

The specificity of payment and settlement services exceeds by its nature beyond purely commercial

activity, acting as a bloodstream of economic turnover subject to specific conditions combining

convenience, availability and security of transferred funds of users of these services – consumers,

businesses, institutions, parties to payment transactions. The crucial importance of these services to the

economy whilst ensuring competitiveness was reflected in EU legislation transposed to regulations of

Member States, including Poland (Act on Payment Services). The competence of regulators,

government institutions, legislative and supervisory bodies include the possibility of actively

influencing the market of the aforementioned services in its scope, through the possibility of creating

legal and economic conditions conducive to competition, innovation and interoperability while

maintaining the security and integrity from a systemic perspective.

In this context, it will be important to use the synergy trend visible not only in financial services,

combining the competence of bodies specialized in the sphere of the so-called new technologies and

the creation of added value that goes beyond the realm of payment services and the market potential of

entities that hitherto created payment services, including their existing, modern and scalable

infrastructure ready to support innovative solutions.

The openness of the payment and settlement services market for business entities to provide freedom

of development, competition and implementation of innovative solutions, created in collaboration with

technology providers would be supported in a manner appropriate to the role and powers of the entities

listed below, through taking the following specific initiatives and activities of a continuous character.,

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One of the most important issues among them is the matter of supporting the building of the incubator

of innovation in the payments industry.



recommendation

1. Creating legislation supporting competition on the payments

market

Relevant ministries

2. Improving the licensing process

KNF

3. Studying the market for the emergence of innovative projects and

evaluating their potential

UOKiK, UKE

4. Considering the possibility of financial support of chosen

products from the payment area and the infrastructure in this area

BGK, MRR, NCF, NSC, PARP,

MG, Polish Investments for

Development S.A.

5. Supporting the initiative to build an incubator of innovation and

an entity responsible for lease-up of payment projects

MNiSW, PARP

Action 5.2: Supporting the creation of a pro-innovative and competitive Polish payment

ecosystem – a platform of cooperation of all entities involved in payments

The recommended actions listed above in different areas of regulation and of stimulating the

development of payment services would not only promote economic growth based on modern, non-

cash payment and clearing services, but also shape the market to ensure its effectiveness, integrity, and

so-called interoperability, encouraging on the one hand to implementing innovative solutions by

existing and new market entrants, on the other hand preventing its proliferation and niche nature.

Therefore, it is reasonable to simultaneously promote the development of coherent solutions in the

field of user experience on how to conclude and authorize transactions and potentially enabling the

exchange of data on the user verification process and settlement of transactions (that is, verification of

the identity of the client, his payment account number) between the participants of the payment system

on the market, where they compete with each other primarily in the areas of added value, whilst

cooperating in the field of data exchange standards and security.



recommendation

1. Supporting the initiatives to create new payment systems Relevant ministries

2. Considering the possibility to regulate the method of assigning

payment account numbers by payment institutions

MF

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