COREDO > Licensing > PSP Licence — Payment Service Provider

PSP Licence — Payment Service Provider

What is a PSP Licence

A PSP (Payment Service Provider) licence allows companies to legally provide payment services within the European Union, including money transfers, payment processing, and other fintech solutions. It is one of the most widely used regulatory instruments for entering the European payments market.

Since 2016, COREDO has been assisting clients with obtaining PSP licences, helping them select the most suitable jurisdiction, prepare the required documentation, and successfully complete the licensing process in accordance with European regulatory standards.

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Cost of the service
from 25 000 EUR

Regulatory Framework

Payment institutions in the European Union are regulated by PSD2 (Directive (EU) 2015/2366 on payment services), which entered into force on 13 January 2016 and was transposed into the national legislation of all EU Member States by January 2018.

PSD2 establishes uniform licensing rules, capital requirements, client fund protection standards, and security norms for all payment service providers. The key articles governing PI activity are:

Article 7 of PSD2 defines the minimum initial capital of a payment institution depending on the range of services provided. Article 28 of PSD2 enshrines the passporting mechanism — the right of a licensed PI to provide services across all EEA member states without obtaining separate licences in each country. Article 10 of PSD2 sets out requirements for client fund protection through segregation or insurance.

AML legislation operates in parallel: the EU’s Sixth Anti-Money Laundering Directive (AMLD6) and the succeeding AMLR Regulation (Regulation (EU) 2024/1624), which comes into full force in 2027, require PIs to implement robust KYC systems, transaction monitoring, and reporting.

On the regulatory horizon is PSD3 (the Directive to replace PSD2): on 27 November 2025, the European Parliament and the Council of the EU reached a provisional agreement on PSD3 and the accompanying PSR Regulation. After official publication, Member States will have 18 months to transpose it, meaning the new requirements will become mandatory approximately by the end of 2027. Existing PI licences remain valid during the transitional period.

Regulatory supervision is exercised by national competent authorities: in Lithuania — Lietuvos Bankas (Bank of Lithuania), in Estonia — Finantsinspektsioon (EFSA), in the Czech Republic — Česká národní banka (ČNB), in Poland — Komisja Nadzoru Finansowego (KNF), in the United Kingdom — Financial Conduct Authority (FCA).

Who Needs a PSP Licence

A PSP/PI licence is required by any company that intends to provide regulated payment services within the EU on behalf of third parties. It is most relevant for the following business categories:

Payment gateways and acquirers. Companies processing online payments for e-commerce stores, SaaS platforms, and marketplaces are required to hold a PI licence to lawfully conduct card and bank account transactions on behalf of clients.

Money transfer operators. Fintech services facilitating international money transfers for individuals and B2B payments operate precisely within the PI licence framework (covering money remittance or the full range of payment services).

Corporate payment platforms. B2B solutions for automating supplier payments, counterparty settlements, and treasury operations require regulated PI status to work with corporate funds.

Open Banking and PISP/AISP services. Companies developing open banking solutions — payment initiation and account data aggregation across multiple banks — are licensed under PSD2 as PIs specialising in PIS/AIS.

Fintech startups. For companies launching a payment product without the need to issue e-money, a PSP/PI licence provides a faster and more accessible regulatory pathway compared to a full EMI licence.

If your business moves money between accounts, executes payment orders, or provides payment initiation services — a PSP/PI licence is a mandatory regulatory requirement.

Requirements for Obtaining a PSP Licence

General requirements for obtaining a payment institution licence are established by PSD2 and further specified in the national legislation of each jurisdiction.

Minimum initial capital (PSD2, Art. 7).

The capital amount depends on the range of licensed services. For the provision of money remittance services only, EUR 20,000 is required. For specialisation in payment initiation (PIS) — EUR 50,000. For the full range of payment services (acceptance and execution of payment orders, acquiring, issuance of payment instruments, and other services listed in Annex I to PSD2) — EUR 125,000. Please note: these are EU regulatory requirements establishing the minimum own funds of the company; COREDO’s licensing support fees are a separate cost item.

Corporate structure.

The applicant must be legally registered in the country of licensing and have a permanent physical presence (registered office and operational centre). Most jurisdictions require incorporation as a joint-stock company or a limited liability company.

Management qualification (Fit & Proper).

Directors and key staff must meet requirements for professional experience, business reputation, and independence. The regulator conducts checks against sanctions lists, PEP (politically exposed persons) lists, and criminal records registers.

AML/CFT compliance.

The development and implementation of an anti-money laundering policy, KYC procedures, transaction monitoring, and the appointment of a responsible officer (MLRO) are mandatory. Requirements are set out in AMLD6 and AMLR.

Client fund protection.

A PI must either place client funds in segregated bank accounts or cover them with an insurance policy. This ensures the safety of client funds even in the event of the operator’s financial difficulties.

Business plan and IT infrastructure.

The regulator evaluates a detailed business plan with financial projections, a description of the business model, target markets, and technological solutions. Compliance with DORA (Digital Operational Resilience Act) requirements for information security and operational resilience is mandatory.

Available Jurisdictions

COREDO provides PSP/PI licence acquisition services in 9 jurisdictions. Each has its own regulatory features, typical timelines, and regulatory burden:

Jurisdiction	Licence Type	Min. Regulatory Capital	COREDO Fee	Timeline
Estonia	PI (Finantsinspektsioon)	from EUR 20,000	from EUR 25,000 + VAT	3–6 months
Poland (SPI)	Small Payment Institution (KNF)	no minimum	from EUR 60,000 + VAT	3 months
Lithuania	PI (Lietuvos Bankas)	from EUR 20,000	from EUR 60,000 + VAT	3–6 months
Portugal	PI (Banco de Portugal)	from EUR 20,000	from EUR 60,000 + VAT	6–12 months
Czech Republic	PI/SPI (ČNB)	from EUR 0 (SPI) / from EUR 20,000 (PI)	from EUR 40,000 + VAT	3–6 months
Spain	PI (Banco de España)	from EUR 20,000	from EUR 80,000 + VAT	6–12 months
Poland (NPI)	National Payment Institution (KNF)	from EUR 20,000	from EUR 180,000 + VAT	6–12 months
United Kingdom	PI (FCA)	from GBP 20,000	from EUR 100,000 + VAT	6–12 months
Estonia (EMI)	EMI (Finantsinspektsioon)	EUR 350,000	from EUR 40,000 + VAT	4–8 months

The Estonian PI licence is one of the most cost-effective in the EU in terms of support fees, while providing full passporting rights to all EEA countries. Lithuania and Poland (SPI) are attractive for startups: the Bank of Lithuania offers a limited-activity licence with no capital requirements for domestic-only operations. The United Kingdom retains FCA authorisation post-Brexit; companies registered in the UK do not have automatic passporting rights to the EU.

The recommended choice of jurisdiction depends on target markets, business model, and planned transaction volume. COREDO specialists conduct a preliminary screening and help select the optimal option.

Payment Services Licensing Beyond the EU

For companies targeting markets outside the European Union, payment services regulation varies significantly by jurisdiction. Key non-EU jurisdictions with active payment services regimes include:

Canada — FINTRAC and RPAA. Payment services are regulated under the Retail Payment Activities Act (RPAA, 2024) and supervised by FINTRAC. MSB companies must register with FINTRAC and comply with AML/CFT requirements, as well as obtain provincial licences. Capital requirements: CAD 25,000 – 250,000 depending on the province. Licensing timeline: 3–6 months.

Singapore — Monetary Authority of Singapore (MAS). Regulation is governed by the Payment Services Act 2019 (PS Act). MAS issues two licence classes: MPI (large operators) and SPI (smaller operators), covering e-money, money transfers, digital asset tokenisation, and merchant payments. Minimum capital: from SGD 1 million (SPI). Review period: 4–6 months. One of the most advanced regulatory regimes in the Asia-Pacific region.

Switzerland — FINMA FinTech Licence. There is no dedicated PSP licence. Payment intermediaries operate under Art. 1b of the Banking Act (FinTech licence), provided they do not meet the threshold for a full banking licence. Oversight is carried out by self-regulatory organisations (SROs). PSD2 does not apply. Capital and operational requirements are lighter than for a banking licence. Timeline: 2–4 months.

United Arab Emirates and Dubai. Regulation depends on the emirate: DFSA covers operators in the DIFC; CBUAE regulates at the national level; ADGM offers an alternative regime in Abu Dhabi; VARA oversees crypto and digital payment services in Dubai. Minimum capital: AED 5–20 million (approx. EUR 1.3–5.3 million). Timeline: 4–8 months. The sector is growing rapidly, particularly in international transfers.

COREDO Service Fees

Below are COREDO’s fees for PSP/PI licensing support. Fees include document preparation, regulator communication, and support at all stages.

It is important to distinguish between two types of costs. Regulatory capital (from EUR 0 for SPI to EUR 125,000 for a full PI) is a requirement for the own funds of the company being licensed, which remain on its balance sheet. COREDO service fees are a separate payment for professional licensing process support.

Jurisdiction	Type	COREDO Service Fee
Estonia	PI	from EUR 25,000 + VAT
Estonia	EMI	from EUR 40,000 + VAT
Poland	SPI	from EUR 60,000 + VAT
Czech Republic	SPI/PI	from EUR 40,000 + VAT
Lithuania	PI	from EUR 60,000 + VAT
Portugal	PI	from EUR 60,000 + VAT
Spain	PI	from EUR 80,000 + VAT
United Kingdom	PI	from EUR 100,000 + VAT
Poland	NPI	from EUR 180,000 + VAT

Government fees (payable to the regulator) are paid separately and vary by jurisdiction. For example, the state fee in Lithuania is EUR 898. COREDO service fees are set individually and may depend on the complexity of the business plan, ownership structure, and the required set of documents.

PSP Licence Acquisition Process

The payment institution licensing process at COREDO consists of six sequential stages.

Preliminary screening and jurisdiction selection (1–2 weeks).

COREDO specialists analyse your business model, planned payment services, and target markets. Based on the screening, the optimal jurisdiction, licence type (PI, SPI, or EMI), and a preliminary documentation plan are determined.

01

Corporate structure preparation (2–4 weeks).

Registration of a legal entity in the chosen jurisdiction, arrangement of a registered office and physical presence, selection and verification of directors and key staff for Fit & Proper compliance.

02

Documentation development (3–6 weeks).

Preparation of a complete set of licensing documents: a business plan with 3-year financial projections, AML/CFT policy and procedures, IT infrastructure and security systems description, client fund protection mechanisms, internal risk management policies. The quality of documentation directly affects the regulator’s processing speed.

03

Application submission (1–3 business days).

COREDO prepares and submits the complete set of documents to the national regulatory authority. The official review period begins from the date of submission.

04

Regulator review (2–12 months).

The regulator conducts a comprehensive review: analyses the business plan, assesses the Fit & Proper status of directors, and reviews AML policies and IT infrastructure. During this period, the regulator may request additional documents or clarifications. COREDO ensures prompt responses to all enquiries. Review timelines vary: from 3 months in Estonia and Lithuania to 12 months in Spain and the United Kingdom.

05

Licence receipt and launch of activities (1–2 weeks after approval).

Following approval, the licence is published in the regulator’s register. The company gains the right to commence operations. COREDO provides support in setting up operational processes, configuring regulatory reporting, and, where necessary, assists with passporting notifications to other EEA countries.

06

Why COREDO

COREDO is a European law firm specialising in financial licensing since 2016. During this time, we have supported the acquisition of financial licences in more than 23 jurisdictions for clients from around the world.

Full-cycle support

From the initial consultation on licence and jurisdiction selection — to the regulator’s decision and post-licensing support. We handle document preparation and submission, communication with the regulator, and responses to queries during the review process.

Personal project manager

Each client is assigned a dedicated manager who oversees the entire process, monitors deadlines, and serves as the single point of communication.

Knowledge of European regulatory practice

The COREDO team knows the preferences and working practices of ČNB, EFSA, Lietuvos Bankas, KNF, and the FCA. This allows us to anticipate regulators’ questions and prepare comprehensive documentation right from the first submission.

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Our Experts

Pavel Kos

Leads COREDO's legal team since July 2020. Coordinates financial licence acquisition projects across EU jurisdictions. Education: University of Finance and Administration, Prague — Master's in Finance.

Basang Ungunov

COREDO lawyer since June 2022, specialising in financial regulation and corporate law. Education: Kalmyk State University — LLM (Civil Law).

Frequently Asked Questions

What is the difference between a PSP (PI) licence and an EMI licence?

A PI (payment institution) may execute payment transactions, transfer funds, and provide open banking services, but may not issue electronic money or hold client funds on its balance sheet. 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.

Can one PSP licence be used to operate in multiple EU countries?

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.

How long does it take to obtain a PSP licence?

Timelines vary depending on the jurisdiction and the completeness of documentation. The fastest jurisdictions are Estonia and Lithuania: review takes 3–6 months. In the Czech Republic — also 3–6 months. In Spain, Portugal, Poland (NPI), and the United Kingdom — 6–12 months. The quality of the initial document package significantly affects processing speed: incomplete or poorly prepared applications result in additional enquiries and delays.

Is a physical office required in the country of licensing?

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.

Can a non-EU founder obtain a PI licence in the EU?

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.

How will PSP requirements change with PSD3?

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. After officially entering into force, Member States will have 18 months to transpose. Existing PI licences remain valid during the transitional period. COREDO specialists monitor all legislative changes and help clients adapt to new requirements.

What ongoing obligations arise after obtaining a PI licence?

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.

Submit Application

Ready to begin the PSP licence acquisition process? Contact our specialists for an initial consultation. We will screen your business model, help you select the optimal jurisdiction, and prepare an individual licensing plan.

The consultation is free. We work with clients worldwide since 2016.