Obtaining an SPI Payment License

If you are planning to operate a payment system, you will need an SPI payment license. This license is required for all companies that intend to process, store, and transmit payment data. In this article, we will provide you with a step-by-step guide on how to obtain an SPI payment license.

What is an SPI License?

An SPI (Small Payment Institution) license is a regulatory authorization that allows a company to provide payment services to customers. This type of license is required for businesses that process low-value transactions, typically up to €3,000. Examples of SPI services include e-wallets, prepaid cards, and mobile payments.

Who Issues SPI Licenses?

SPI licenses are issued by national regulatory authorities in the country where the company is based. Each country has its own regulatory framework and requirements for obtaining an SPI license. For example, in the UK, SPI licenses are issued by the Financial Conduct Authority (FCA), while in Germany, they are issued by the Federal Financial Supervisory Authority (BaFin).

Opportunities Provided by an SPI License

An SPI license provides businesses with the legal framework to operate a payment system. It also allows companies to:

• Offer payment services to customers
• Process and store payment data
• Transmit payment data securely
• Access payment networks
• Expand their customer base

Best Jurisdictions for Obtaining an SPI License

The best jurisdiction for obtaining an SPI license depends on your business needs and objectives. Some of the top jurisdictions for obtaining an SPI license include:

• UK: The FCA is known for its rigorous application process, but the UK is considered one of the most attractive jurisdictions for financial services companies due to its strong regulatory framework and reputation for stability.
• Cyprus: Cyprus is a popular jurisdiction for companies looking to obtain an SPI license due to its low corporate tax rates and EU membership.
• Malta: Malta is known for its favorable tax environment, EU membership, and growing fintech industry.

Main Difficulties in Obtaining an SPI License

Obtaining an SPI license can be a challenging and time-consuming process. Some of the main difficulties include:

• Meeting the regulatory requirements set by the national authority
• Providing evidence of sufficient financial resources and expertise
• Demonstrating that your company has robust anti-money laundering (AML) and know-your-customer (KYC) procedures in place
• Preparing a comprehensive business plan and demonstrating that your company has a viable long-term strategy.

How Long Does it Take to Obtain an SPI License?

The time it takes to obtain an SPI license varies depending on the country and the complexity of the application. In the UK, the FCA estimates that it takes between three and six months to obtain an SPI license. In Cyprus, the process can take up to six months, while in Malta, it can take between four and six months.

In addition to the length of time it takes to obtain an SPI license, companies may also face difficulties during the application process. For example, the regulatory authority may request additional information or documentation, which can delay the process. It is therefore important to be well-prepared and have a clear understanding of the regulatory requirements before applying for an SPI license.

Conclusion

Obtaining an SPI payment license is a complex process that requires a detailed understanding of the regulatory framework in the country where your company is based. However, the opportunities provided by an SPI license can be significant, allowing companies to offer payment services to customers, access payment networks, and expand their customer base. By following the steps outlined in this guide, you can increase your chances of obtaining an SPI license and growing your payment business.