> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ecrop.de/llms.txt
> Use this file to discover all available pages before exploring further.

# Payment services (ZAG)

The Payment Services Supervision Act (`ZAG`) regulates the provision of payment services in the European Economic Area (`EEA`). Although `ecrop` itself is not a payment institution and does not offer payment services within the meaning of the `ZAG`, understanding the `ZAG` is relevant for our customers and our business model, as our crypto securities issuers and custodians regularly interact with payment service providers in their business operations.

The following sections explain the distinction between our services and regular payment services, the interfaces with payment service providers, the importance of integrating payment service providers for our customers, and additional measures to ensure compliance with applicable regulations.

### What are Payment Services and Why are They Necessary Partners for `ecrop` Platform Customers?

Payment services under `ZAG` include services related to payment accounts, such as executing transfers, direct debits, and card payments, as well as issuing payment cards and e-money accounts.

**Although `ecrop` itself does not offer any of these services, they are relevant to our business model as our `ecrop` issuers receive fiat currencies in their payment service provider account to issue crypto securities.**

### Distinction of `ecrop` Services from Payment Services:

`ecrop` is not a payment institution within the meaning of the `ZAG` and therefore does not offer regular payment services. Our platform provides software for the registry of crypto securities pursuant to § 1 Para. 1a Sentence 2 No. 8 `KWG` and for the custody of crypto assets pursuant to § 1 Para. 1a Sentence 2 No. 6 `KWG`; these licence-requiring activities are carried out by our licensed partners. Providing this software is outside the scope of the `ZAG`.

### Interfaces with Payment Service Providers:

To enable the deposit and withdrawal of fiat currencies by issuers, `ecrop` cooperates with the payment provider Secupay AG. Secupay AG is a regulated payment institution and holds the required licenses for providing payment services.

* **Secure Interface:** The interface for information exchange between `ecrop` and Secupay is secure and complies with data protection requirements. Data exchange is encrypted (`TLS` encryption) and logged to ensure traceability and security of transactions.

* **Regular Reviews:** We conduct regular reviews of the interface and Secupay AG to ensure security and compliance with applicable regulations.

### Compliance:

Secupay ensures that the cooperation with `ecrop` complies with the requirements of the `ZAG` and anti-money laundering regulations.

* **Regular Controls:** We conduct regular controls of processes and implementations.

* **Risk Management:** Our risk management system assesses risks associated with cooperation with payment service providers and implements appropriate risk mitigation measures.

* **Reporting:** We regularly report to management and supervisory authorities on the status of payment services and compliance with regulatory requirements.

### Operational Implementation:

* **Defined Processes:** Clear processes govern the cooperation with Secupay and information exchange between parties for the issuer.

* **Control Mechanisms:** We employ control mechanisms to ensure security and compliance in payment transactions, e.g., transaction monitoring to ensure transaction data integrity.

* **Regular Reporting:** We create regular reports on deposits and withdrawals that are reported to management and supervisory authorities.