Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Obtaining an EMI Payment Licence
For a FinTech project that wants to do more than simply process payments and instead intends to create its own wallet, issue electronic money or build a full-scale payment ecosystem, a standard payment licence may not be sufficient.
In such a case, it is worth considering the status of an Electronic Money Institution (EMI). This is one of the most attractive regulatory statuses for FinTech companies in the European Union.
At the same time, an EMI is not a “simplified bank account” and is not merely a formality for a startup. The regulator assesses the business model, owners, management, capital, AML/KYC, IT infrastructure and the company’s ability to handle client funds safely.
What is an EMI licence and what does it allow?
An EMI is a regulated financial institution authorised to carry out electronic money operations and payment services as defined by applicable legislation.
For a FinTech business, this status may be relevant if the company plans to create its own wallet or another product in which electronic money forms part of the business model.
In practice, an EMI may be used to build:
- electronic wallets for individuals and businesses;
- payment platforms;
- multi-currency financial products;
- solutions for e-commerce and marketplaces;
- embedded finance and other FinTech products.
The specific range of permitted services depends on the jurisdiction, licensing model and actual business structure.
How does an EMI differ from a Payment Institution?
This is a key question that should be resolved before the licensing process begins.
A Payment Institution (PI) is primarily focused on providing payment services. An EMI has the additional ability to work with electronic money under the applicable regulatory regime.
| Criterion | Payment Institution | Electronic Money Institution |
|---|---|---|
| Payment services | Yes | Yes |
| Electronic money | No, not as the primary licensed product | Yes |
| Wallet solutions | Depends on the model | One of the typical use cases |
| Suitable for | Payments, transfers, acquiring, etc. | E-money, wallets and comprehensive FinTech solutions |
Therefore, the choice between PI and EMI should not be based on which licence appears “more prestigious”, but on what the company actually intends to do with client funds.
Who needs an EMI licence?
EMI licensing should be considered by companies that want to build their own regulated financial infrastructure rather than simply connect to an existing payment provider.
In particular, it may be relevant for:
- FinTech startups;
- payment platforms;
- wallet providers;
- marketplace and e-commerce platforms;
- embedded finance projects;
- companies planning to scale a payment product across the EU.
If the business only needs to accept payments through a third-party provider, obtaining its own EMI status may not be economically justified.
What requirements must be met to obtain an EMI licence?
The regulator assesses the company comprehensively. A good idea or sufficient share capital alone is not enough.
The licensing process generally involves analysis of:
- the corporate structure and UBOs;
- the professional reputation and experience of management;
- the business plan and financial model;
- sources of capital;
- the AML/KYC framework;
- the risk management system;
- mechanisms for safeguarding client funds;
- IT architecture and information security.
Particular attention is paid to whether the proposed structure reflects the actual business. If the company appears to be a technology startup in its business plan but suddenly becomes a complex financial institution with a dozen products in the licence application, the regulator will inevitably raise questions.
What documents are required to obtain an EMI licence?
The specific package depends on the country and regulator, but the applicant must be prepared for a comprehensive review.
In practice, the following documents are prepared:
- the company’s corporate documents;
- information on shareholders and UBOs;
- documents relating to directors and key management;
- a business plan;
- financial projections;
- a description of products and payment flows;
- AML/KYC policies;
- a risk management framework;
- policies for safeguarding client funds;
- IT and cybersecurity documentation;
- Source of Funds and Source of Wealth documents for the owners.
It is particularly important that these documents do not exist as separate templates. The regulator must see a clear connection between the business model, operational structure, IT and compliance.
How much does it cost to obtain an EMI licence?
The cost depends on the country, the complexity of the business model and the scope of legal and regulatory work.
Legal expenses are not the only costs to consider. The project may require funding for:
- share capital;
- local management or key personnel;
- compliance and AML functions;
- IT and cybersecurity;
- audit;
- office and operational infrastructure.
Therefore, an EMI project should be viewed as the creation of a fully regulated financial institution rather than the purchase of a separate document called a “licence”.
How to obtain an EMI licence in the EU?
The process can be broadly divided into several stages.
- Regulatory analysis.
We determine whether EMI is genuinely the optimal status for the business, which services are required and in which jurisdiction it is most appropriate to apply. - Company structuring.
We establish the corporate structure, determine the UBOs, management, key functions and operational model. - Preparation of the licensing package.
We develop the business plan, financial model, AML/KYC, risk management, IT documentation and other materials. - Application submission and communication with the regulator.
We support the submission, respond to requests and revise the documents where necessary. - Preparation for operational launch.
After authorisation is obtained, we help ensure that actual operations comply with the licensed model.
What advantages does an EMI licence provide for a FinTech company?
- Own regulated infrastructure. The company gains significantly more control over its financial product and customer experience.
- Ability to create proprietary e-money products. This opens up more opportunities for wallet and embedded finance models.
- Scaling within the EU. Subject to completion of the relevant procedures, the company may benefit from the opportunities available within the European regulatory framework.
- Greater independence from third-party providers. The business becomes less dependent on whether a partner changes its pricing, risk policy or service terms.
- Investment attractiveness. A clear regulatory status may be an important factor for investors and strategic partners.
Is an EMI licence suitable for your business?
To make a preliminary assessment of the complexity of the project, answer four questions:
- Do you plan to create your own electronic wallet?
- Will you issue or work with electronic money?
- Do you plan to independently control the payment infrastructure?
- Is scaling the business across the EU a strategic objective?
If the answer to most of these questions is “yes”, an EMI licence may be one of the options worth analysing in detail.
Why choose Prikhodko & Partners?
EMI licensing requires an understanding of corporate law, FinTech regulation, AML/KYC, banking compliance and the operational business model at the same time.
Prikhodko & Partners supports international FinTech projects at various stages: from business model analysis and selection of a regulatory strategy to preparation of licensing documentation and communication with the regulator.
We also help structure the related infrastructure — the corporate structure, compliance, banking and payment solutions, as well as ongoing regulatory compliance.
Planning to create your own electronic wallet, issue electronic money or develop a payment product in the EU? Contact Prikhodko & Partners for business model analysis, jurisdiction selection and comprehensive support in obtaining an EMI licence.
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Do you need help in collecting and preparing documents for obtaining a license?
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Are you ready to consider buying a business with an already valid EMI license?
Is an EMI licence a banking licence?
No. An EMI is a separate type of regulated financial institution and is not equivalent to a bank. The rights and obligations of an EMI are determined by the applicable legislation and the terms of the authorisation obtained.
Can an EMI licence be obtained for a cryptocurrency product?
It depends on the specific business model. If the product combines electronic money, payments and cryptoasset transactions, the requirements for each regulated activity must be analysed separately, including the applicable regime for crypto-asset services.
Can a product be launched across the entire EU immediately after obtaining an EMI licence?
Not automatically. Cross-border provision of services requires compliance with the procedures prescribed by law and consideration of the requirements of the countries in which the company intends to operate. Therefore, the scaling strategy should ideally be incorporated at the licence application preparation stage.
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