EMI and PSP Licensing: A Strategic Overview
Choosing between an EMI, a payment institution and an agent model changes your capital, safeguarding and passporting position permanently.
Fintech Entrepreneur
The licence is a business model choice
Founders often ask which licence is fastest. The better question is which licence matches the balance sheet you intend to run.
Comparison
Electronic money institution. Permits issuance of e-money and holding of customer balances. Requires safeguarding, initial capital and a credible wind-down plan.
Payment institution. Executes payments without holding stored value. Lower capital, narrower product surface.
Agent or distributor of a licensed principal. Fastest to market, but the principal owns the customer relationship and the regulatory perimeter.
Key points
- Safeguarding design is examined more closely than capital adequacy in most first inspections.
- Outsourcing registers and exit plans are now standard conditions, not afterthoughts.
- Passporting economics differ sharply between the EEA, the UK and the Gulf.
Content is provided for general informational purposes only and does not constitute legal, regulatory, tax, investment or financial advice.
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