EC publishes second report on assembling payment account data under PAD

The European Commission (EC) has published its second report mandated under Article 27 of the Payments Account Directive 2014/92/EU (PAD), on assembling specific payment related data from Member States on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (PABFs). The EC highlights that the differences in data collection methods across Member States and that existing data gaps make it difficult to draw firm conclusions about the extent of PAD's benefits to European consumers, though the report offers some tentative findings. The report covers information relating to 2022 and 2023, as well as complete data for 2021 that was not available at the time of the first report. The report confirms general compliance by payment service providers with Articles 4, 5 and 6, which require the provision of standardised fee information, annual fee statements and consistent terminology in consumer communications. Most Member States also have operational comparison websites as required under Article 7, with websites updated regularly and some offering information through various communication channels and public campaigns, helping to raise consumer awareness.

However, the EC suggests they should be assessed regularly to ensure information is more relevant and easily accessible for consumers. Regarding switching services, the EC finds over 17.6 million accounts have been switched since 2016. However, payment account switching is being used more in some Member States than others. There are also significant differences across Member States in the number of switching applications that are refused. With regards to PABFs, nearly two million were opened in 2023, although the number of new account openings differs significantly across Member States. The report states this may be partly due to differences in how banks offer these features to customers. Rejection rates also vary, often linked to anti-money laundering concerns or customers' past negative experiences with banks, among other reasons. The EC will follow up the findings of the report, including the low uptake of the switching service or high rejection rates for PABFs in some Member States, discuss them with Member States and explore whether further actions could be beneficial, including at Member State level. The EC will also continue to work with Member States to ensure more robust and comparable data going forward.

Return to main website.