EMI/PSP License 2025

EMI/PSP License Sale 2025

Companies with a European Payment Institution License

A licensed payment institution is an ideal solution for financial service providers, fintech companies and payments and remittance startups. The Payment Institution license is the most popular license for providing payment solutions for online stores.

Services that payment institutions can provide:

• A service that allows cash to be deposited into a checking account.

• A service that allows cash withdrawals from checking accounts.

• Implementation of payment transactions, direct debits, transactions using payment cards or similar instruments, and credit transfers.

• Payment transactions are executed when funds are backed by a line of credit.

• Issuance and/or purchase of payment instruments.

• Transfer of funds.

• Payment initiation (PSD2 implementation).

• Account Information (PSD2 Implementation)

Companies with European e-money licenses

Electronic money institutions with a license in a member state of the European Union (EU) can offer a wider range of financial services than payment institutions. The opportunity to provide services and conduct business in any other EU country in Europe takes advantage of common market restrictions and additional requirements of national regulators.

The Single Euro Payments Area (SEPA) is a network of 500 million consumers and more than 20 million companies that make payments in euros with low fees, common terms, rights and obligations, regardless of their location in Europe. Licensed electronic money institutions can join SEPA directly, just like banks, and open personal IBAN accounts for their customers. EMI-certified companies can open sub-accounts within their bank accounts for their customers, giving them the opportunity to create electronic wallets. In turn, customers can exchange cash for electronic equivalents issued by the company, stored in their electronic wallets.

Services that companies with e-money licenses can provide:

• Deposits and Withdrawals of Client Funds

• Payment transactions, but not including the provision of credit

• Acquiring

• Fund transfer

• Payment Initiation Services

The difference between a Payment Service Provider (PSP) and an Electronic Money Institution (EMI)

The main difference between the two types of payment service providers is that only EMIs can issue electronic money or digital currency, such as electronic stored value cards (prepaid cards) or cash balances recorded on an account (e-wallet) or other device.

Why you should choose an off-the-shelf solution

Our company always strives to find the most convenient solution for our clients, since the actual time for preparing documents and obtaining a financial license in Europe is 9-18 months. Below, you can find quotes from ready-made payment institutions and companies with a valid EMI license. If you want to quickly start your financial business in Europe, our legal team will be happy to advise you on various solutions, depending on your preferences and requirements. In 4 weeks, you will be able to start your activities as a payment institution or EMI operator. Contact our team to find the best option for your project.

Top European EMI

How to obtain an EMI/PSP license in Europe

In today’s financial services industry, the role of digital payments and financial technology, or FinTech, is growing as demand for secure, efficient and innovative payment solutions continues to grow. In the digital payments market alone, the number of users is expected to exceed 601 million by 2027.

To regulate this promising industry, Electronic Money Institution (EMI) and Payment Service Provider (PSP) licenses have come into focus. EMI and PSP licenses are crucial in shaping the future of electronic payments, enabling businesses to legally provide a range of digital financial services, from electronic money issuance to payment processing.

In Europe, these licenses are governed by a complex regulatory framework and standards, which is why it is vital for financial institutions to review applicable regulations before choosing the most suitable European jurisdiction for an EMI/PSP license. Obtaining a license from a reputable jurisdiction can have an impact on how your customers and partners view your business and whether they trust you enough to provide financial services.

What is an Electronic Money Institution (EMI) License?

An Electronic Money Institution (EMI) license is a regulatory authorization granted by the central bank of a selected country to financial institutions or companies that intend to provide electronic money services and payment services. EMIs play an important role in the financial ecosystem as they are often at the forefront of fintech innovation. They promote the development of the financial industry by driving improvements in digital payment solutions, mobile banking applications and online financial services.

EMI license holders can engage in the following activities:

• Issue electronic money, which is a digital representation of electronically stored funds that can be used for a variety of financial transactions, including online purchases, fund transfers, and bill payments

• Provides payment services to individuals, businesses and organizations, including processing card payments, facilitating bank transfers and managing online payment platforms

• Provide digital wallet services that allow users to securely store electronic money on a digital platform, thereby enabling users to make payments, transfer funds and manage their finances digitally

What is a Payment Institution (PI) or Payment Service Provider (PSP) license?

A Payment Institution (PI) or Payment Service Provider (PSP) license is a regulatory authorization granted by the financial authorities of the chosen jurisdiction to allow the license holder to provide a wide range of payment services to consumers, businesses and various organizations. These licenses are a fundamental part of the financial regulatory framework and are essential for companies that facilitate electronic payments and financial transactions.

PI/PSP license holders may engage in the following activities:

• Process debit and credit card payments on behalf of merchants and consumers

• Facilitate domestic and cross-border money transfers and remittances

• Set up and manage direct debit transactions such as bill payments

• Initiate electronic payments on behalf of customers

• Providing clients with a comprehensive view of their financial accounts

Advantages of having an EMI or PI/PSP license in Europe

Obtaining an EMI or PI/PSP license in Europe provides the following advantages for financial institutions and corporates:

• Access to the vast EU market, comprising 27 member states, allows license holders to provide payment services and e-money products to a very large customer base

• There is no doubt that obtaining a license from a reputable European regulator enhances the company’s credibility, thereby strengthening the trust of customers, partners and investors.

• Within the EU, EMI and PI/PSP licensees can enjoy passporting rights, which simplifies expansion and reduces regulatory barriers by enabling them to conduct business and provide services in multiple EU countries

• The EU is a global hub for fintech innovation and a European EMI or PI/PSP license puts holders at the forefront of the rapidly evolving payments and fintech industries

• A European EMI or PI/PSP license simplifies cross-border transactions within the EU, making it easier for customers to send and receive funds between European countries.

• Companies holding European EMI or PI/PSP licenses can access regulatory guidance and support from regulators with many years of expertise to help them meet complex compliance requirements

• Holding a European EMI or PI/PSP license provides legal protection, ensuring that the company complies with applicable laws and regulations, thereby reducing the risk of legal issues and penalties

• European EMI or PI/PSP licensees can use their regulatory experience to expand into non-EU markets, leveraging their credibility and expertise

European EMI and PI/PSP regulations

European EMIs and PIs/PSPs are subject to strict but innovation-friendly regulations that govern their operations and ensure the stability and security of the financial system. These regulations are designed to protect consumers, prevent financial crime, and promote competition and innovative solutions in the payment industry.

EMIs based in the EU/EEA are governed by the Electronic Money Directive (EMD 2009/110/EC), which includes the following provisions:

• Definition of electronic money

• Regulatory requirements for the issuance of electronic money

• Initial and ongoing capital requirements

• Authorization to protect client funds and prevent bankruptcy

• Operational and security standards, including Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures

• Passporting rules for cross-border operations within the EU/EEA

PIs/PSPs based in the EU/EEA are governed by the Payment Services Directive (PSD 2007/64/EC and PSD2 2015/2366), which includes the following provisions:

• Definition of payment services, including payment initiation, account information, and payment transaction execution

• Regulatory requirements for PIs/PSPs, including capital adequacy, governance and client protection

• Under PSD2, all licensees are required to implement strong customer authentication (SCA) and secure communications to enhance the security of online payments.

• Account access (XS2A) regulations, which allow third-party providers to access customer account information with consent

• Passporting rules, which allow PIs/PSPs to operate across EU/EEA countries using a single licence from EU/EEA countries

The following EU legislation applies to EMI and PI/PSP:

• The EU Anti-Money Laundering Directive (AMLD) requires the implementation of a strong AML/CFT program to prevent money laundering and the funding of illicit activities

• The General Data Protection Regulation (GDPR) establishes personal data protection principles, consent requirements and data breach reporting obligations

• Regulation (EU) 2015/751 on interchange fees for card-based payment transactions sets a cap on interchange fees for card-based payment transactions.

• Cross-border Payments Regulation (EC) 924/2009 enforces transparency and fairness in cross-border payment services, affecting cross-border remittance services

• Regulation (EU) 2015/751 on Multilateral Interchange Fees for Card-Based Payment Transactions addresses interchange fees for card-based payment transactions.

• EU Cross-Border Payments Regulation (EC) 260/2012 aims to reduce the cost of cross-border payments and increase transparency on currency conversion fees

• Regulation (EU) 2018/389 on interchange fees for card-based payment transactions amends and extends the Regulation on interchange fees for card-based payment transactions.

It is also important to note that while many of the laws described above are transposed into national legislation in each EU country, each country's regulatory framework should be reviewed individually as they are all different regardless of the comprehensive laws. To fully determine the licensing process and ongoing compliance requirements for a specific European jurisdiction, please contact our experienced team of attorneys at 101-155-1 and we will arrange a personalized consultation for you.

Top 8 countries with the largest number of authorized PIs, EMIs and AISPs in the EU

Top jurisdictions for EMI or PI/PSP licensing in Europe

When considering setting up an EMI or PI/PSP in Europe, the choice of jurisdiction is critical, as different European countries offer various advantages, regulatory environments, and market opportunities. You may wish to choose a jurisdiction based on your business model, resources, target markets, and timeline.

In recent years, Lithuania, as a member of the European Union, has become a popular jurisdiction for obtaining an EMI or PI/PSP license. Lithuania is known for its efficient and streamlined EMI and PI/PSP licensing process, as the regulator, the Bank of Lithuania, usually grants one of the licenses within 3 months. The country has been proactive in embracing innovation in the financial sector, which makes it an ideal location for businesses seeking to develop groundbreaking financial services solutions. Notably, Lithuania is a member of the Single Euro Payments Area (SEPA), which facilitates transactions in euros between participating European countries and provides licensees with access to a wide range of European payment services markets.

Estonia, another EU country and a member of the Single Euro Payments Area, is considered one of the most favorable jurisdictions to obtain an EMI or PI/PSP license. The application process can take up to 6 months, which is quite efficient compared to other European jurisdictions. The Estonian Financial Supervisory Authority supervises licensees and provides clear guidelines to ensure that applicants submit quality applications that will lead to positive outcomes. Estonia is known for its advanced digital infrastructure and e-governance initiatives, creating a favorable environment for fintech businesses. In addition, Estonia offers a competitive corporate tax rate (20%), which enables licensed companies to operate cost-effectively.

Malta is one of the most well-known and respected jurisdictions within the EU to obtain an EMI or PI/PSP license. The Malta Financial Services Authority (MFSA) oversees Malta financial services to strictly comply with EU regulations and is committed to maintaining a stable financial environment, allowing licensees to build trust among clients, partners and investors. Despite the strict regulatory requirements, the MFSA is usually able to grant one of the licenses within 3-6 months. In addition, Malta offers certain tax benefits to companies engaged in financial services (e.g., a low effective corporate tax rate and no taxation on dividends paid to non-resident shareholders), which makes it attractive for businesses.

The UK is also considered a favorable jurisdiction for obtaining EMI and PI/PSP licenses due to its well-developed and vibrant financial ecosystem. The UK has a thriving fintech industry and provides a supportive environment for companies seeking to develop innovative payment solutions. The Financial Conduct Authority (FCA) is the regulator responsible for overseeing financial services in the UK. The agency is widely recognized for its sound regulatory framework and commitment to consumer protection, which makes licensees trustworthy businesses in the eyes of customers, partners and investors. One of these licenses can be obtained within 3-12 months, depending on the completeness of the submitted application.

Requirements for European EMI and PI/PSP license applicants

As each European country has its own regulatory framework, the specific legal prerequisites for applicants for EMI or PI/PSP licenses vary from jurisdiction to jurisdiction, regardless of EU regulations. However, you can still get an idea of the most common eligibility criteria and requirements, which can provide you with a general regulatory picture in Europe.

To apply for an EMI or PI/PSP license, you must first set up a company in the country where you intend to apply for a license. You can choose from widely used legal business structures such as a private limited company or a public limited company. Depending on the procedures in the jurisdiction you choose, the complexity of your business and the quality of your application, the registration process can take anywhere from a few business days to several weeks.

Once you have established a company, it will need to meet the following requirements:

• Have a minimum initial capital, which varies widely between countries but roughly ranges from €125,000 to €350,000, with EMI and PI/PSP ranging from €20,000 to €125,000 respectively

• Company directors and shareholders must meet appropriate conditions specified by the regulator in the chosen jurisdiction to demonstrate their financial and professional integrity

• Appropriate AML/CFT procedures and policies must be in place

• Comply with the EU’s PSD2 regulations, including establishing secure and standardized interfaces and ensuring secure communications with customers

• Must have the technical infrastructure required to provide secure financial services, including protecting customer funds

• A clearly defined risk management framework must be in place to identify and mitigate potential risks, including operational, financial and compliance risks

• You must pay an application fee, which varies in each country and can range from a few thousand euros to hundreds of thousands of euros

Applicants for European EMI or PI/PSP licenses usually have to prepare the following documents:

• A detailed business plan detailing the proposed EMI or PI/PSP operation, including details such as proposed services, target markets, risk assessment and financial projections

• Articles of Association

• Articles of Association

• Information on all shareholders, including personal information, financial background, and ownership percentage

• Overview of the company's organizational structure

• Financial statements for the next few years, including balance sheets, income statements, and cash flow forecasts

• Proof of possession of the required initial capital

• Detailed description of the AML/CFT program

• Details of the applicant’s cybersecurity measures (e.g. encryption, data protection and fraud prevention measures)

• Technical specifications, including a description of the company's IT infrastructure and systems

• A detailed description of the company's risk management framework

• Proof of insurance coverage

• Business continuity and disaster recovery planning

• The process of generating and submitting regulatory reports to regulators in selected jurisdictions

• Customer Agreement and Terms of Service

How to apply for EMI or PI/PSP license in European countries?

Although the specific application process varies depending on the chosen jurisdiction, there are still some necessary and common steps when applying for a European EMI or PI/PSP license. First, be sure to complete your application materials thoroughly to avoid any delays or rejections. Our team can guide you through the process by ensuring that all necessary steps are completed according to the precise requirements of the authority in your chosen jurisdiction.

Applying for a European EMI or PI/PSP license involves the following key steps:

• Gather all required documents and information needed to apply for a permit

• Pay the required filing fees to the regulatory authority in the chosen jurisdiction

• Complete the official application form provided by the regulatory body and submit it along with the required documents to the respective agency

• Participate in interviews or meetings with regulatory agency representatives

During the application review process, European regulators seek assurances that the applicant can establish a sustainable financial business, promote the reputation of the chosen jurisdiction, protect the public interest and protect customers. Each successful applicant is usually granted a license for a certain period of time, which can then be renewed if the business continues to comply with relevant regulations.

Ongoing requirements for European EMI and PI/PSP licensees

Once your firm is licensed as an EMI or PI/PSP in Europe, it must comply with ongoing requirements and responsibilities to remain compliant with regulatory standards in the jurisdictions it operates in. These ongoing requirements are essential to ensure the safety of client funds, protect firms from financial crime, and maintain the integrity of national and European financial systems.

In order to assess compliance with regulatory requirements, it is key to maintain internal controls, conduct regular audits, and implement internal and external audit procedures. To demonstrate ongoing compliance, licensees are required to submit regular reports to regulators, including financial statements, transaction reports, and other relevant data.

It is particularly important to comply with AML/CFT regulations, which require European licensees to implement the following measures:

• Continuously monitor customer transactions to detect and report any suspicious activity to the Financial Intelligence Units in relevant jurisdictions

• Conducting thorough due diligence on all clients before entering into a business relationship or engaging in occasional transactions, including verifying the identity of the client and the beneficial owners of the business

• Take enhanced due diligence measures where there is a higher risk of money laundering or terrorist financing

• Keep records of customer transactions, identity verification and due diligence checks for at least 5 years after the end of the business relationship

• Identify and conduct enhanced due diligence on politically exposed persons and their family members and close associates

• Ensure AML/CFT measures extend to third-party relationships, including agents or business partners involved in providing services

• Provide ongoing training and awareness activities for employees to ensure they understand their role in AML/CFT compliance and can identify suspicious activity

If you wish to obtain an EMI or PI/PSP license in Europe, our team will be happy to support you in registering your company and applying for a license in a European jurisdiction that suits your business goals. With dedicated legal advisors, tax experts and financial accountants by your side, you will find the process of obtaining an EMI or PI/PSP license and registering your company in Europe simple, frictionless and transparent. Contact us today to arrange a personalized consultation and lay the foundation for long-term success.