Nikita Veremeev
13.11.2025 | 6 min read
Updated: 13.11.2025
EMI license (Electronic Money Institution): this is a permit to issue electronic money, open e-wallets and hold clients’ funds. Such a license allows fintech companies to issue their own payment cards, provide IBANs for foreign companies and ensure access to the international payment systems SEPA and SWIFT.
PSP license (Payment Service Provider) – this is a payment system license that allows conducting payments, transfers, mass payouts and currency conversion without holding clients’ funds on its own accounts. A PSP license is an optimal tool for services where the key advantage is speed of launch and flexibility of the business model.
The regulation of both licenses is based on the PSD2 Directive, which sets standards for payment institutions, e-wallets and other fintech solutions in the EU. Experience at COREDO confirms: the correct choice of license determines not only scalability opportunities but also resilience to regulatory changes, which in recent years have become increasingly stringent.
Main differences between EMI and PSP
Understanding the differences between EMI and PSP determines not only the capabilities for working with electronic money and payments, but also the level of control the user gains over their funds.
EMI functionality and capabilities
An EMI license opens up the widest range of possibilities for fintech:
- Issuance of electronic money: the right to issue electronic money and ensure its circulation within payment services, e-wallets, mobile applications.
- Opening accounts and e-wallets: clients can have individual IBANs, multi-currency accounts, integration with SEPA and SWIFT for international payments.
- Safeguarding client funds: client funds are protected by segregation, which increases trust in the service.
- Issuing payment cards: the ability to issue proprietary cards (Visa, Mastercard, etc.), which is especially in demand for startups, digital banks, and mobile wallets.
- Access to international payment infrastructures: direct connection to SEPA, SWIFT, issuing IBANs for foreign companies.
A COREDO-implemented project for a European fintech startup with multi-currency e-wallets showed that an EMI license becomes the key to entering the B2B and B2C payment services market, SaaS platforms, and marketplaces.
PSP functionality
A PSP license is a tool for companies that do not need to hold client funds:
- Execution of payments without holding funds: a PSP acts as a payment operator, providing instant transfers, mass payouts, currency exchange, but does not accumulate client funds.
- Mass payments and currency conversion: a PSP license is in demand for mass payout services (e.g., freelance platforms, marketplaces), as well as for exchange offices and payroll payout services.
- Opening accounts for clients: it is possible to provide IBANs for foreign companies; however, without the right to hold funds for a long period.
- Restrictions on holding funds: a PSP cannot retain client funds longer than the established period (usually 24–48 hours), which imposes limitations on the business model.
COREDO’s experience in supporting the registration of a PSP license for a mass payments platform in the Czech Republic showed that this format allows fast launch of services for e-commerce, SaaS, and international payouts with minimal compliance costs.
Comparison table: EMI and PSP
| Parameter | EMI license | PSP license |
|---|---|---|
| Holding of funds | Yes | No |
| Issuance of electronic money | Yes | No |
| Issuing payment cards | Yes | No |
| Opening accounts/wallets | Yes | Yes |
| Access to SEPA/SWIFT | Yes | Limited |
| IBAN for foreign companies | Yes | Yes |
| Minimum capital | 350 000 EUR | 125 000 EUR |
| Time to obtain | 6–12 months | 3–6 months |
| AML requirements | High | Medium |
| Transaction restrictions | Yes (sEMI, EMI) | Yes (sPI, PSP) |
EMI or PSP: How to choose a license for fintech
The choice of license for fintech depends on the specifics of your services and the requirements for issuing electronic money.
When an EMI license is needed
An EMI license is required if you:
- are launching e-wallets, a digital or online bank, a mobile wallet that stores funds, issues cards, and integrates with international payment systems.
- plan to scale a payment service: entering international markets, working with foreign customers, providing IBANs.
- are building a fintech platform that issues electronic money — for example, for SaaS, a marketplace, the crypto industry, or B2B/B2C services.
The solution developed at COREDO for European fintech made it possible not only to legally issue electronic money, but also to integrate the service with SEPA and SWIFT, which became a driver for expansion into EU and Asian markets.
When a PSP license is needed
A PSP license is optimal if:
- your business model involves mass payments, transfers, currency exchange, or payroll — you do not store clients’ funds but only enable their fast processing.
- you need quick Licensing and launch: the timeframe for obtaining a PSP license is shorter, and the requirements for share capital and compliance are lower.
- you work with international clients: a PSP license is suitable for mass payout services, e-commerce, SaaS, freelance platforms, and exchange services.
COREDO’s experience has shown that a PSP license is an effective choice for platforms where time-to-market and flexibility in scaling are priorities.
EMI and PSP for international business, examples
EMI for a startup with e-wallets: one of COREDO’s clients — a fintech startup from the EU — obtained an EMI license in Lithuania to launch multi-currency wallets, integrate with SEPA, and issue its own cards. This allowed them to attract corporate clients from the EU and Asia, as well as ensure the storage of funds with maximum protection.
PSP for a mass payments platform: for a SaaS platform working with freelancers and contractors worldwide, the COREDO team implemented a project to obtain a PSP license in the Czech Republic. This approach ensured a fast launch of the mass payouts service and minimal compliance costs.
EMI vs PSP for e-commerce and marketplaces: for large marketplaces and e-commerce services, an EMI license offers more advantages due to the ability to issue electronic money, hold funds, and integrate with international payment gateways. A PSP license is the choice for services where settlement speed is important and there is no need to hold funds.
EMI and PSP: regulation and requirements in the EU and worldwide
Regulation and requirements for EMI and PSP in the EU and abroad constitute a strict system of rules aimed at ensuring the stability, transparency and security of financial operations. For successful operation in this market, companies must carefully consider the minimum statutory capital, as well as the financial and organizational requirements established by EU regulators and other jurisdictions.
Minimum statutory capital and financial requirements
- EMI license: minimum statutory capital – 350 000 EUR. For small EMIs (sEMI), from 50 000 EUR, but with turnover and geographic restrictions.
- PSP license: minimum statutory capital: 125 000 EUR. For small PSPs (sPI) – from 20 000 EUR, also with restrictions on transaction volume.
The COREDO team always recommends taking into account not only formal requirements but also market expectations: regulators often pay attention to the adequacy of capital relative to the business plan and the envisaged risks.
Timeframes for obtaining a license
- EMI license: from 6 to 12 months, depending on the jurisdiction, the complexity of the corporate structure and the completeness of the documentation.
- PSP license: from 3 to 6 months, which allows faster launch of mass payment services and international transfers.
In practice, COREDO has encountered cases where, with proper preparation and interaction with the regulator, the timeframe for obtaining a PSP license in Estonia was less than 4 months.
AML and KYC requirements
- EMI license: strict AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures, mandatory implementation of CDD (Customer Due Diligence) and EDD (Enhanced Due Diligence), regular audits and reporting.
- PSP license: AML requirements and KYC are also high, but the volume of internal control and the depth of customer checks are somewhat lower.
A COREDO-implemented AML consulting project for a large payment institution in Slovakia showed that a systematic approach to compliance not only minimizes regulatory risks but also increases trust from banks and partners.
EMI and PSP: comparison by jurisdictions
A comparison of EMI and PSP across different jurisdictions shows how the choice of country affects capabilities, cost and speed of obtaining a license. Each jurisdiction has its own regulatory specifics, capital requirements and services available to payment organizations.
EMI and PSP in Lithuania
Lithuania – one of the EU leaders in the number of issued EMI and PSP licenses. Advantages:
- Fast application review times (6–9 months for EMI, 3–5 months for PSP).
- Transparent requirements for capital and corporate structure.
- Developed infrastructure for fintech.
For large-scale B2B/B2C services in Lithuania, it’s more advantageous to choose an EMI; for startups and mass payout services – a PSP.
EMI and PSP licenses in the Czech Republic
The Czech regulator focuses on transparency and predictability of procedures. Features:
- Stable capital requirements.
- Emphasis on AML procedures and disclosure of beneficial ownership.
- Ability to register as either an EMI or a PSP with minimal bureaucratic barriers.
The solution implemented by COREDO for a mass payments platform confirmed: a PSP license in the Czech Republic is the optimal choice for fast launch and scaling.
EMI and PSP in Estonia
Estonia actively supports fintech startups:
- Simplified registration procedures.
- Electronic interaction with the regulator.
- Ability to obtain e-Residency for foreign founders.
For companies focused on international payments and e-wallets, an EMI license in Estonia opens up broad opportunities.
EMI and PSP in Singapore
Singapore is one of the most technologically advanced and heavily regulated markets in Asia:
- Strict compliance requirements and financial reporting.
- High entry barrier for EMI and PSP licenses.
- Requirement to have a local director and secretary, and a transparent corporate structure.
The COREDO team implemented a project to register a payment company in Singapore for an Asian fintech, enabling the client to legally operate with electronic money and international payments, and to integrate with local banks and payment gateways.
How do I register a payment company and obtain a license?
The process of registering a payment company and obtaining a license requires a clear sequence of actions and strict compliance with all regulators’ requirements.
Preparation of the business model and corporate structure
- choosing a jurisdiction: analysis of requirements, timelines and licensing costs, regulatory specifics.
- Development of the business model: defining target markets, payment scenarios, integration with SEPA, SWIFT, IBAN.
- Corporate structure and beneficial control: disclosure of ownership structure, preparation of a governance scheme, appointment of key persons.
A clear business model and a transparent structure are the foundation for successful licensing.
Collection of documents for application submission
- Financial reporting: preparation of forecasts, confirmation of sources of capital.
- Internal regulatory documents: AML/KYC policies, CDD and EDD procedures, compliance requirements.
- Regulatory submission package: charter, information on beneficiaries, CVs of key personnel.
Professional support at this stage significantly reduces the risk of rejection.
Application submission process and interaction with the regulator
- Submitting the application: electronic or paper form, depending on the jurisdiction.
- Interaction with the regulator: responding to inquiries, providing additional documents, participating in interviews.
- Payment systems audit: demonstrating compliance with internal and international standards.
Proper interaction with the regulator helps speed up the licensing process and avoid additional checks.
Opening an account and launching operations
- Banking support: selecting a bank, preparing the document package, undergoing compliance procedures.
- Opening an EMI/PSP account: obtaining an IBAN, integration with payment gateways.
- Operations launch: testing payment scenarios, onboarding clients, initiating mass and international payments.
Comprehensive support at all stages ensures a successful launch and scaling the business.
Conclusions and recommendations
- How to choose a license: EMI or PSP? Base your decision on the business model, plans for holding funds, scaling and target markets. For e-wallets, digital banks and services that hold funds choose EMI. For mass payments, currency exchange and rapid launches — PSP.
- Practical steps for registration and launch: a clear business model, a transparent structure, thorough document preparation and professional support are the key to successful licensing.
- Tips for minimizing risks and complying with AML: implement modern AML/KYC procedures, regularly update compliance documents, and invest in employee training.
- How to choose a reliable partner for legal support: pay attention to experience, expertise and the presence of completed cases in your jurisdiction. A comprehensive approach reduces regulatory risks and accelerates market entry.
Frequently Asked Questions (FAQ)
What licenses are needed for a financial business?
To launch a fintech service in the EU and abroad, an EMI or PSP license is required, as well as additional authorizations to work with cryptocurrencies, mass payments, and currency exchange.
How to open an account in a foreign bank?
You need to prepare a package of documents (articles of association, corporate structure, information about beneficiaries), undergo compliance procedures and confirm the legality of the sources of funds. Professional support helps to navigate the process at every stage.
What is AML and how to comply with it?
AML (Anti-Money Laundering) – a set of measures to prevent money laundering, including KYC, CDD, EDD, internal policies and regular reporting. For EMI and PSP, implementing an effective AML system is a mandatory regulatory requirement.
How to legally protect a business?
It is recommended to establish a transparent corporate structure, implement internal regulatory documents, regularly audit payment systems and keep compliance procedures up to date.
How to choose a reliable consulting partner?
Assess experience, expertise, a proven track record of completed cases and transparency of communication. A comprehensive approach ensures long-term resilience and minimizes regulatory risks.