The financial transfer business has established itself as a payment instrument for small amounts in mass transactions. The largest provider processes more than 275 million financial transfer orders each year. The financial transfer business, as operated by specialized providers, is increasingly developing as an alternative to traditional bank transfers, as it is faster and more flexible. This competitive situation against the payment transaction business of credit institutions is supported by a legal framework that is favorable to financial transfer companies. The financial transfer business is classified under civil law as a fee-based service contract. As such, it is not subject to specific transparency requirements, execution deadlines, or liability regulations, as is the case with bank transfers. From a regulatory perspective, specialized providers of the financial transfer business are treated as financial service institutions, which are subject to simplified supervision. The upcoming implementation of the proposed directive on payment instruments in the internal market will essentially not change the privileged position of financial transfer companies.