The EMI License

Here are some key points about the EMI License:


  • Scope of Services: The EMI License typically enables a company to issue electronic money, store electronic money on behalf of clients, facilitate electronic payments, and offer related financial services. Electronic money refers to digitally stored monetary value, often represented as a balance on a prepaid card or in a digital wallet.


  • Issuing Electronic Money: With this license, EMIs can create and distribute electronic money, which can be used by customers for various transactions, including online purchases, money transfers, and digital wallet payments.


  • Payment Services: EMIs can provide various payment services, such as electronic fund transfers, payment processing, and merchant services, which are essential for enabling electronic payments and financial transactions.


  • Cross-Border Operations: In the European Union, an EMI License issued by one member state allows the licensed entity to operate throughout the EU, thanks to the EU’s passporting regime. This simplifies expansion within the European single market.


  • Regulatory Oversight: To obtain and maintain an EMI License, companies must adhere to strict regulatory requirements, including anti-money laundering (AML) and know-your-customer (KYC) procedures, capital adequacy standards, and consumer protection measures. Regulatory authorities, such as the Bank of Lithuania in the case of Lithuania, monitor and supervise licensed EMIs to ensure compliance.


  • Streamlined Licensing Process: Some countries, including Lithuania, have streamlined their licensing processes to attract FinTech companies. They offer a clear and relatively efficient path to obtaining an EMI License, making them attractive destinations for FinTech startups.


  • Innovation and Competition: The EMI License has played a significant role in promoting innovation and competition in the financial sector. It has enabled the emergence of new players, such as digital banks and payment service providers, challenging traditional banking models.