PORTUGAL Law and Practice Contributed by: João G Gil Figueira, Rodrigue Devillet Lima and Catarina Andrade Miranda, GFDL Advogados
collect deposits, enter into inter-bank lending, and issue debt and securitisations. Specialised lending organisations, such as retail credit firms, have various avenues to secure funds for their lending operations. They can raise capital through securitisation or borrowing from other investors or institutions. Additionally, they may utilise peer-to-peer lending platforms, such as crowdfunding service providers, to access funds. Peer-to-peer lending platforms will allow inves - tors’ funds to be sourced. 4.4 Syndication of Fiat Currency Loans Syndicated loans involve several parties, and complex documentation is mostly used for acquisitions or in the context of restructuring. Therefore, loan syndication is reserved for the largest transactions, falling outside most fintech players’ market scope and practice. Typically, the most significant financing contracts are con - ducted outside of online platforms, contributing to the country’s limited occurrence of loan syn - dication.
SEPA Instant Transfer Scheme, facilitating trans - fers between bank accounts. Faster Payments’ “Instant Payment” rail allows swift bank-to-bank transfers, a component of the European SEPA system widely supported by banks and savings banks in Portugal. This service operates round the clock, enabling users to execute transfers promptly. Additionally, payments can be initiated via the SWIFT network to any member bank worldwide. Modern payment methods diverge from con - ventional networks, enabling direct peer-to-peer transfers without intermediary financial institu - tions. This innovation allows users to transfer funds between accounts, bypassing traditional banking systems seamlessly. It should be noted that although there is no legal impediment to developing and using alternative payment rails, the payment service scene in Por - tugal is highly dominated by SIBS, which holds control over the ATM network and is considered one of the most advanced systems in the world. 5.2 Regulation of Cross-Border Payments and Remittances Payment transactions are governed by the EU Payment Services Directives, adopted into Por - tuguese law through Decree-Law No 91/2018 of 12 November, and fall within the jurisdiction of the Bank of Portugal. As an EU member state, Portugal falls under the geographical influence set by the SEPA Regula - tion (Regulation (EU) No 260/2012), which out - lines the SEPA, crucial in facilitating seamless cross-border money transfers. For instance, the regulation prohibits companies from rejecting cross-border direct debits, commonly called “IBAN discrimination” , by mandating accept -
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Payment rails represent the digital infrastructure, facilitating cashless transactions by transferring funds from a payer to a payee. Payment proces - sors have the flexibility to select their preferred payment rail. However, certain fixed transaction systems have become established within tradi - tional account-based payment systems. For instance, within the Single Euro Payments Area (SEPA), bank transfers occur through the
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