Payment Institution (PI) License Services

Payment Institution (PI) License Services

If your product moves money in the EU, you may need a payment institution license. We help fintechs get authorized under PSD2 or PSD3, manage local regulator requirements, and passport services across the EEA.

Speak to an expert

As seen on:

Eligibility

Do You Need a Payment Institution License?

If your business moves funds between people or holds money for others, even temporarily, you likely need a money transmitter license. Here are examples of regulated models.

Escrow and Custody Platforms

Platforms that hold client funds temporarily during a transaction flow often require a license, unless exempt under limited network rules.

Escrow and Custody Platforms

Platforms that hold client funds temporarily during a transaction flow often require a license, unless exempt under limited network rules.

Investment Apps with Cash Features

Fintechs that combine investing with payment services like cash transfers, account top-ups, or card issuance often need a Payment Institution license.

Investment Apps with Cash Features

Fintechs that combine investing with payment services like cash transfers, account top-ups, or card issuance often need a Payment Institution license.

Payroll and Disbursement Services

Businesses that manage salary payments or facilitate bulk disbursements on behalf of clients may fall under PSD2 payment service categories.

Payroll and Disbursement Services

Businesses that manage salary payments or facilitate bulk disbursements on behalf of clients may fall under PSD2 payment service categories.

Prepaid and Stored Value Services

Issuers of prepaid cards or stored value products may need a license, especially if funds are loaded and held before being used.

Prepaid and Stored Value Services

Issuers of prepaid cards or stored value products may need a license, especially if funds are loaded and held before being used.

Cross-Border Payments

Companies facilitating international fund transfers for individuals or businesses must typically be licensed and follow EU AMLA requirements.

Cross-Border Payments

Companies facilitating international fund transfers for individuals or businesses must typically be licensed and follow EU AMLA requirements.

Learn More About PI

Policies and Procedures for Payment Institutions

Payment Institution License Requirements

Steps

How to Apply for a Payment Institution License

Choose Your Licensing Jurisdiction

Select an EU member state where you’ll apply for authorization. This will be your “home” regulator for ongoing supervision and passporting rights.

Choose Your Licensing Jurisdiction

Select an EU member state where you’ll apply for authorization. This will be your “home” regulator for ongoing supervision and passporting rights.

Prepare Required Documentation

Gather documents, including your business plan, program of operations, AML policies, financial forecasts, and internal controls. You’ll also need to show how you'll safeguard client funds.

Prepare Required Documentation

Gather documents, including your business plan, program of operations, AML policies, financial forecasts, and internal controls. You’ll also need to show how you'll safeguard client funds.

Meet Capital and Governance Requirements

Payment institutions must meet initial capital thresholds, which are usually €20k to €125k, depending on services, and appoint qualified leadership, including a local compliance officer.

Meet Capital and Governance Requirements

Payment institutions must meet initial capital thresholds, which are usually €20k to €125k, depending on services, and appoint qualified leadership, including a local compliance officer.

Submit the Application to Your Regulator

File your application with the national competent authority (e.g., BaFin in Germany, ACPR in France). The review process may take several months and include regulator Q&A.

Submit the Application to Your Regulator

File your application with the national competent authority (e.g., BaFin in Germany, ACPR in France). The review process may take several months and include regulator Q&A.

Passport Services Across the EEA

Once authorized, you can notify your intent to offer services in other EU/EEA countries through passporting, without needing new licenses in each country.

Passport Services Across the EEA

Once authorized, you can notify your intent to offer services in other EU/EEA countries through passporting, without needing new licenses in each country.

Resources

Latest Content

Articles

Guidelines for Referral Program Compliance in Financial Services

Broker-Dealers

RIAs

ATS

Apr 22, 2025

16 min read

Articles

Guidelines for Referral Program Compliance in Financial Services

Broker-Dealers

RIAs

ATS

Apr 22, 2025

16 min read

View All

FAQ

Frequently Asked Questions

Do I need separate payment licenses for the UK and the EU?

How much capital is required to become a licensed payment provider?

What is a Payment Institution under PSD2?

What’s included in a PI license application?

How long does it take to get licensed as a Payment Institution?

What’s the difference between a PISP and an AISP?

Can we passport our PI license to other EU countries?

Do Payment Institutions need to register with the EBA?

What happens if PIs change their business model after licensing?

Start Your Payment Institution License Plan

PI License