Business planning & Establishment of corporate structure


Preparation of documentation for PI or EMI license application


Procurement of licenses

A non-bank PSP is a company providing retail payment services whose main business is not related to taking deposits from the public and using these deposits to make loans. In the EU and UK, there are many types of non-bank PSP License, and PSP Lab can help you to choose the one is that is right for you and become authorised in the jurisdiction of your choice (most often we help our clients to get UK EMI License or Lithuania EMI license). If you may also be interested in our UK Cryptoasset License Service.

Types of non-bank PSP License

Currently, the most popular types of licenses for payment FinTech companies in the European Union are one of the two non-bank PSP Licence: Payment Institution License (PI License or API License) and Electronic Money Institution  License (E-money Institution, E-money or Electronic Money License). Both licenses permit to engage in the provision of core payment services that allow serving a wide variety of businesses. Nevertheless, there are more types of licenses and authorisations. There are Small Payment Institutions (SPI) and Small E-money Institution (SEMI) that are allowed to provide payment services only in the country of registration.

Moreover, authorisation and operational requirements differ depending on the type of services that the company is engaged in. Finally, Payment Service Directive (PSD2) introduced new types of PSP License for companies that do not wish to handle client funds: Payment Initiation Service Provider License (PISP License), and Registered Account Information Service Provider License (RAISP License). The lastly mentioned licenses are part of the initiative of the Open Banking in the EU which aims to help customers and small to medium-sized businesses to get a better deal through expanding the choice of products and services.

PSP Lab can help you to determine what kind of non-bank PSP License is the most suitable for your business. As a first step, we have prepared a comparative table based on the PSD 2 and requirements present in the UK and Lithuania. It briefly outlines the type of services which can be offered after getting each type of PSP License.

Payment services under PSDIIYes(1)YesYesYesNoNo
Electronic money issuanceNoNoYes(2)YesNoNo
EU passport for cross border servicesNoYesNoYesYesYes
Payment Initiation ServiceNoYes(3)NoYes(3)Yes(3)No
Account information Service
Safeguarding requirementNoYesNoYesNoNo
1 Average monthly payments volume can not exceed EUR3,000,000 equivalent
2 Average outstanding electronic money can not exceed €500,000 (UK), €900,000 (Lithuania)
3 If PIS and/or AIS provided, indemnity insurance is required

If you want to understand whether you need Electronic Money Institution License (EMI license), Payment Institution License (PI license) or a bank license you can read our article discussing the difference between e-money wallet and payment account, article explaining the difference between PIs and EMIs, and article explaining the difference between a bank and an EMI.

Getting a non-bank PSP License (PI, AISP, PI, EMI License)

The life cycle of any company with a non-bank PSP License (e.g., EMI License) depends significantly on how reliable was the foundation it is built upon. Some start-ups may survive and prosper, but most will not see the growth stage. To be one of the former, you must take all steps in a calculated manner. Such an approach will help you to achieve success and grow your business exponentially.

Obtaining a non-bank PSP license is a crucial step in establishing your FinTech company, providing payment services, e-money issuance service or both. PSP Lab will guide you through the whole process, prepare necessary documents, forms and applications, assist you in communication with the relevant authorities. From our side, we will manage and provide you with:

  • Assistance with the development of a business plan
  • Preparation of document required for the application (financial projections, policies & procedures, terms & conditions, authorisation forms, etc)
  • Choosing a third-party software provider and/or software development team
  • Setting-up a company
  • Finding office
  • Opening of a safeguarding account
  • Communication with regulatory authority during the application phase
Hidden Content

How do we work?

If you want to establish and operate a FinTech business engaged in the provision of payment services, PSP Lab can help your business by facilitating the acquisition of the necessary PSP License to give a head start for the implementation of your idea. We pride ourselves on knowing the peculiarities of the industry and can assist with the adjustments which are required to make any FinTech company successful.

Regardless of the jurisdiction, the process of provision of services required for obtaining any non-bank PSP License (e.g., EMI license) is usually the same and involves three steps: 1. Assessment, 2. Preparation, 3. Application. Furthermore, PSP Lab provides ongoing support to its clients even after the license is acquired, so you can be sure that the qualified advice will be always within the reach. The whole process is summarised below with a brief description of each step in more detail.

EMI license Authorisation process

How PSP Lab can help?

The process of registration or authorisation as can be tedious without proper knowledge and industry insights. PSP Lab may assist you with a timely procurement of authorisation and establishment of a solid framework for operating your business. Exact documents that you will need to apply for a PSP license depend on your business model. Typical services for obtaining a EMI license offered by PSP Lab consists of:

Preparation of documents

  • Business Plan, including market research, plan of operations, marketing plan, etc;
  • Financial projection (3 years) including Profit/Loss Statement, Balance Sheet, Cash Flow Statement, sensitivity tests and capital adequacy assessment and fully automated financial model in Excel;
  • CDD, AML, CFT Policy and Procedures with appendixes (country risk scoring, lists of accredited AML solution providers, corporate forms, etc.);
  • PEP Risk Management Policy and Procedures;
  • IT and Electronic Payments Risk Management Policy and Procedures;
  • Underwriting and Risk Management (Acquiring) Policy and Procedures;
  • Foreign Exchange Risk Policy and Procedures;
  • Liquidity Risk Policy and Procedures required to have PI or EMI license;
  • Operational Risks Policies:
    • Settlement, and Safeguarding Accounts Risk Management Policy and Procedures;
    • Counterparty Risk Management Policy and Procedures;
    • Agent Appointment Policy and Procedures;
    • Financial Crime Risk Management Policy and Procedures;
    • Data Protection Policy and Procedures;
    • Incident Reporting Policy and Procedures;
  • Customer service Terms and Conditions:
    • Payments Business Line;
    • Acquiring Business Line;
    • Privacy Notice;
  • Business Continuity/Disaster Recovery Plan;
  • Incident Reporting and Statistical Data Collection Policy and Procedures;
  • Internal audit plan;
  • Complaints Handling Policy
  • Wind-down plan
  • Whistleblowing policy
  • Authorisation forms for company and individuals.

Preparation of corporate structure

  • Selecting company name;
  • Finding and registering office;
  • Registering company;
  • Drafting shareholder agreement;
  • Registering Trademark with EUIPO or national office;
  • Registering domain names.

Preparation and submission of forms and documents to regulatory authority

  • Corporate controllers:
    • Full set of corporate documents;
    • Financial statements, audit letters (if available);
    • Corporate structure diagram;
    • Certified register of shareholders and directors;
  • Corporate Form;
  • Private controllers and directors:
    • Copy of the passports, drivers license, or national ID cards;
    • CV, copies of diplomas, certificates;
    • Proof of address, reference letters (if any);
  • Individual Form to apply for PI or EMI license.

Other services which are included

  • Advice on a third-party software provider (Core Software, Gateway, AML/KYC) and/or software development team;
  • Communications with a regulator during the application phase (if necessary);
  • Help with the opening of one safeguarding account.

Other services that can be included

  • Translation of documents to any language other than the language of the application;
  • HR recruitment, employees recruitment;
  • Legal support in negotiating agreements;
  • Assistance with opening of additional safeguarding accounts;
  • Post-authorisation support (subsequently to authorisation we will provide you with an offer).

Jurisdictions we cover

A financial regulator from each jurisdiction in the European Union can grant a company a non-bank PSP Licenses in accordance with the EU Law, but each jurisdiction has its own specific rules related to the authorisation process and operation of companies (also note that the UK left the EU and it has already changed certain laws relating to non-bank PSP License). For example, limits for Small Payment Institutions may differ from jurisdiction to jurisdiction. Another example can be found in Estonia, where only those Payment Institutions that provide money remittance, payment initiation, account information services can be private limited companies, while for all other payment services (e.g., services requiring EMI License) the legal entity must be established as a public limited company. Therefore, before you apply for a PSP License in a particular jurisdiction it is wise to seek qualified advice to familiarise yourself with the twists and turns present in different countries.

PSP Lab consultants know in practice, not in theory, all of the specifics of EU member states’ and UK regulations and procedures that must be followed. We can advise you on the timeframes, difficulties that can be potentially encountered during the authorisation process, and even on the strictness of the regulatory oversight post-authorisation. Thus, PSP Lab can assist you with choosing the most suitable jurisdiction and type of PSP License required for your FinTech business. We encourage you to reach out to us and learn more about the process, preliminary timelines, and the required amount of work.

While we mainly help companies to get a PSP License in the UK or Lithuania (as the most desired destinations for licensing as a FinTech business offering payment services)  we also help our clients with other jurisdictions and other types of licenses. We have experience with authorisation in other EU member states, licenses in the US, and even banking licenses.

Depending on the type of license and jurisdiction where you wish to obtain such, you can learn more by following the links below. They outline some of the peculiarities present in specific jurisdictions and reveal how PSP Lab can assist you with authorisation in general:

Payment Institution License in the UK

Electronic Money Institution License in the UK

Payment Institution License in Lithuania

Electronic Money Institution License in Lithuania

To help us understand your needs and ascertain that we are the right FinTech consulting firm for you, we offer an initial 30-minute consultation free of charge. Reach out to us in order to learn how we can assist you in establishing and growing your business.

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