Do Online Commerce Platforms provide payment services that require a license?

With the rise of online commerce platforms that host third-party retailers (such as Amazon Marketplace), an important question emerges: when these platforms facilitate the transfer of payments from buyers to sellers, do they effectively provide payment services that require a license?

A Typical Scenario

A seller lists products on an online store hosted by a platform that offers various payment methods (e.g., Klarna or Billie). When a buyer browses the store, selects an item, and chooses one of these payment options, the platform facilitates the transfer of funds from the buyer to the seller. Does this mean the platform is effectively offering payment services that require a license?

Relevant Norwegian Legislation

Norwegian law addresses licensing for payment services in Section 2-3 of the Financing Entities Act (2015-04-10-17). The definition of “payment services” is provided in Section 1-5(1) of the Financial Agreements Act (2020-12-18-146) and further clarified in Section 1-7 of the regulations to the Financing Entities Act. Generally, if a platform takes possession of funds en route from the buyer to the seller, a license is required. However, aside from this primary rule, Norwegian legal sources offer limited guidance on what exactly constitutes a "payment service."

Guidance from the Danish FSA

In this context, guidance from the Danish Financial Supervisory Authority (FSA) is instructive. In a statement dated 10 May 2022, the Danish FSA clarified the conditions under which intermediaries—such as online platforms—may be considered “commercial agents” under the Danish Payments Act. This classification exempts them from certain payment service regulations, even if they take possession of funds as they move from buyer to seller. Although this guidance is based on Danish law, it is relevant for Norway, as both countries have transposed the EU Payment Services Directive ((EU) 2015/2366, PSD2) into their national laws. Thus, while not binding in Norway, the Danish FSA’s insights can inform how similar issues might be resolved under Norwegian law.

The Danish FSA identifies three scenarios in which commerce platforms that facilitate payment transfers from buyers to sellers do not require a license:

1.      Platforms Facilitating Sales Without Handling Payments

Platforms that merely connect buyers and sellers—where buyers pay sellers directly—generally do not need an FSA license.

2.      Platforms Acting as Commercial Agents

Platforms that negotiate or finalize sales on behalf of sellers, and take possession of payments as they move from buyer to seller, may qualify for an exemption from the license requirement, provided they meet the necessary criteria.

3.      Platforms Authorized to Receive Payments

If a seller has authorized a platform to receive payments on its behalf, the platform is considered the rightful recipient under Section 7(11) of the Danish Payment Services Act and falls outside the Act’s scope. In such cases, the seller bears the risk if the platform fails to forward the funds.

Supporting this third point, the UK’s Financial Conduct Authority (FCA) has stated in a Q&A (see Q25 here) that if a company receives a payment from a payer that fulfils the payer’s obligation, it does not qualify as money remittance. This clarification was issued when the UK was an EU member, and thus remains relevant under EU law and, by extension, Norwegian law. The applicable provision under Norwegian law is section 2-2 (1) of the Financial Agreements Act, which states, “If the payer is entitled to settle the payment obligation by transferring the funds to the recipient's account, payment is deemed to have occurred once the amount is credited to the recipient's payment service provider.”. This provision implements PSD2. Consequently, when a platform is authorized by a seller to receive payments on its behalf, the term “recipient’s account” refers to the platform’s account.

Conclusion

In summary, when online commerce platforms facilitate payment transfers between buyers and sellers, whether they provide payment services that require a license depends on how their role is defined under national law. Under Norwegian law—and supported by guidance from the Danish FSA and insights from the UK’s FCA—a platform may not need a license if it either does not handle payments directly or qualifies as a commercial agent.

More importantly, platforms that are authorized by sellers to receive payments on their behalf generally fall outside the scope of Norwegian payment services regulation altogether. As a result, the cumbersome exemption for commercial agents becomes less critical, since merely being authorized by the seller to receive payments is sufficient to avoid the licensing requirement. However, sellers should note that in such cases they bear the risk if the platform fails to forward the funds to them.