Offering of Wallet & Payment Services
Anyone who wants to offer wallet and payment services to customers in the EU requires a corresponding EMI/PSP license. This licensing is regulated throughout Europe by the EU Commission (EU Payment Services Directive 2015/2366 as amended on 25.11.2015) and must be transposed into national law by the individual EU member states. The application and authorization itself differ in nuances in the individual EU states.
However, there are mandatory rules for an EMI/PSP License – such as e.g. the necessary capitalization of € 350,000 – which must always be available and is the same in all EU and EFTA countries. Depending on the type of business model, smaller licenses can also be applied for, so-called SEMI (Small E-Money Institution) or SPSP (Small Payment Service Provider), for which small amounts are then to be deposited. It is therefore important to think carefully about which license is required and if necessary to adapt the business model.
E-Money-License or Payment-Provider-License?
It does not always have to be an EMI/PSP license – often a SEMI / SPSP license is completely sufficient if you do not need EU passporting rights. In such a case, the license will only be valid in the country in which it was requested. Unfortunately, more and more countries are restricting the allocation of e-money licenses or payment service provider licenses due to strict anti-money laundering laws. It is also difficult to find suitable and willing banks to take on account relationships.
So, expect an application time of at least 6-8 months for complete documents, which are also plausible. So do not think so if someone promises you a license for a small thaler and in record time. For example, BaFin (the Federal Financial Supervisory Authority) in Germany has granted Concardis a license for a record-breaking 4 months. However, this company is not exactly the startups and has sufficient substance – both financially and personally.
Where to Apply?
Basically, we can apply for licenses in every EU member state as well as in Switzerland and Liechtenstein. Due to the current situation, we recommend applying for EMI/PSP licenses in the Czech Republic as it also has the necessary banking infrastructure, unlike Ireland or Malta.
We have an office in Prague and speak Czech, so we can take care of the local issues. Please talk to us about your strategic plans.
Simply contact us via our contact form and we will get in touch shortly.
When to use EMI/PSP-Licenses?
Applicants use EMI/PSP-Licenses typically, but not exclusively, when they want to:
Acceptance of customer money via bank transfer, credit card or even in Cryptos electronically – by private companies and companies from EU states and Offshore
Processing / transfer of funds on behalf of third parties to third parties
Direct Debits for customers
No maximum number of customers or maximum amounts that can be accepted per customer – if license itself is not limited
Issuing debit cards and booking money on debit cards like Mastercard, Visa or Diners and Amex
Offering payment services to third parties
Free custom definition of account management / transfer fees etc.
Merchant Account Openings for third party payment processors
Converting FIAT – various currencies – into electronic crypto currency such as Bitcoin, Ether, Litecoin and others
Offering Wallet Services
Act as Payment Services Provider
Issuing Reward Cards
Whether it is an EMI or PSP-License – Passporting throughout the EU can deliver high value.
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