FinTech Licenses EU
Providers of eMoney, payment, and crypto asset services in the EU must be licensed.
Multiple licenses exists; businesses must ascertain which is appropriate for their usage case.
Requirements are extensive and the authorisation process intensive; in most cases, regulators expect to test capability in advance.
On authorisation, you can apply to ‘passport’ across the EU, accessing a market of 450m consumers and EUR 18tn output.
Compliance obligations exist; authorised entities must meet these and adapt to regular changes.
FinTech Licenses EU: Types
| Financial Technology | Digital Assets |
| Payment Institution (PI) | Crypto Asset Service Provider (CASP) |
| eMoney Institution (EMI) | |
| Account Information Service Provider (AISP) | |
| Payment Information Service Provider (PISP) |
FinTech Licenses EU: Payment Institution
Providing payment services
Issuing payment instruments
Acquiring payment transactions
Execution of payment transactions
Money remittance
Payment account services
Currency exchange services linked to payments
…plus Account Information and Payment Information Service Provider.
FinTech Licenses EU: eMoney Institution
Issuing and storing eMoney
Issuance of eMoney
Redemption of eMoney
Storage of eMoney
…plus all Payment Institution services.
Prepaid cards
Digital wallets
eCommerce
Payment accounts
Payment orchestration
Money transfers
Foreign exchange
Neobanking
Banking-as-a Service
FinTech Licenses EU: Account Information Service Provider
Accessing balance and transaction data at 3rd party banks/EMIs
Providing account data
Credit scoring
AML/CTF verification
Treasury management
Open Banking
FinTech Licenses EU: Payment Initiation Service Provider
Initiating payments from accounts at 3rd party banks/EMIs
Payment initiation
FinTech Licenses EU: Crypto Asset Service Provider
Provision of services related to crypto assets
Custody and Management services of crypto-assets
Running a trading platform
Exchanging crypto assets for fiat currency or other crypto assets
Execution of purchase orders
Placement, accepting or transmitting orders
Portfolio management
Asset transfer services
Advisory
Cryptocurrency
Stablecoins
NFTs
Other tokens
FinTech Licenses EU: Summary
The opportunities in fintech licenses are huge: issuing accounts, processing payments, holding client funds, and accessing data. Financial and retail businesses can embrace this to improve their value proposition, service, and profitability.
Barriers to entry are moderate however up-front investment is required, it is essential to validate which license is required and which jurisdiction is best.
Alternative routes to market may also exist; it is essential to take advice before applying for a license.
