CJEU Clarifies Scope Of “payment Service” Under PSD2 In Betaal Garant Nederland

On 16 July 2026, the Court of Justice of the European Union (“CJEU”), in Case C-51/25 (“Betaal Garant Nederland”), ruled that a Dutch construction-sector guarantee provider did not require authorisation as a payment service provider under Payment Services Directive (“PSD2”). The decision, while not expected to have a significant impact on the scope of activities which fall under PSD2, has the potential to influence how key concepts are interpreted under the forthcoming PSD3 regime.

Executive summary

Despite the potential for the CJEU to recalibrate the scope of a “payment service” under PSD2, the CJEU’s judgment is confined to the fact-specific nature of the legal framework surrounding the Dutch guarantee service provider. The CJEU in Betaal Garant Nederland held that the transfer of funds by a Dutch construction sector guarantee provider to contractors, once construction was complete, fell outside the scope of a “payment service” under the PSD2.