PSP Licence — Payment Service Provider

A PI (payment institution) may execute payment transactions, transfer funds, and provide open banking services, but may not issue electronic money; funds it receives from clients for payment transactions must be safeguarded (PSD2, Art. 10). An EMI (electronic money institution) has all the rights of a PI plus the right to issue e-money and maintain electronic client accounts. The minimum capital for an EMI is significantly higher — EUR 350,000 versus EUR 20,000–EUR 125,000 for a PI. If your business model does not involve the issuance of electronic money, a PI licence is a faster and less capital-intensive solution.

Yes. A PI licence obtained in any EEA country grants passporting rights under Article 28 of PSD2. After receiving the licence, the company sends a notification to the national regulator of its intention to provide services in other EEA member states, and the regulator forwards the notification to its counterparts in the relevant countries. Separate licences in each country are not required. This makes a PI particularly attractive for companies targeting the pan-European market.

Timelines vary depending on the jurisdiction and the completeness of documentation. Obtaining an SPI in Poland takes approximately 3 months, and a licence in Lithuania approximately 3–6 months. In the Czech Republic, an SPI takes 6–12 months and a PI 12–18 months; in Poland (NPI), a decision takes about 9–12 months in practice. In the United Kingdom, the FCA usually assesses a complete application within 3 months, while an incomplete one can take up to 12 months; this is the regulator’s assessment, not the whole project or a guarantee of authorisation. The quality of the initial document package significantly affects processing speed: incomplete or poorly prepared applications result in additional enquiries and delays.

Yes, most EU regulators require genuine operational presence in the jurisdiction: a registered office and, as a rule, at least one resident director or a director closely connected with the jurisdiction. Requirements vary by country: Estonia traditionally takes a more flexible approach to this, while the FCA in the United Kingdom has stricter substance requirements. COREDO assists in arranging all necessary presence.

Yes. Shareholders and founders from any jurisdiction can obtain a PI licence in the EU, provided the applicant company itself is registered in the relevant EEA country. All directors and beneficial owners undergo a Fit & Proper check regardless of nationality. In some cases, additional requirements may apply to shareholders from high-risk jurisdictions. COREDO provides assistance with corporate structure design and director selection where necessary.

On 27 November 2025, the European Parliament and the Council of the EU reached a provisional agreement on PSD3 and the PSR Regulation. The new rules provide for updated capital requirements (adjusted for inflation), stricter AML requirements, and expanded obligations for sharing fraud data. Under the final compromise text, Member States will have 21 months after the Directive’s entry into force to transpose and apply it. Existing PI licences remain valid during the transitional period. COREDO specialists monitor all legislative changes and help clients adapt to new requirements.

A licensed PI must: maintain the minimum level of own funds; regularly submit prudential reports to the regulator; comply with AML/CFT requirements and annually update AML policies; notify the regulator of material changes in ownership structure, management, or business model; ensure client fund segregation. Failure to meet ongoing requirements may result in regulatory orders up to and including suspension or revocation of the licence. COREDO provides post-licensing compliance support services.