Payment Institution for Global Payment Processing

The perfect solution for pan-European and global payment processing. Equity capital – from EUR 20 000 to EUR 125 000. 

A licensed payment institution is a perfect solution for financial service providers, FinTech companies, and start-ups processing payments and money transfers of private individuals, companies, and internet merchants. Payment Institution is the most popular license providing payment solutions for internet shops all around Europe. European Union Payment Services Directive adopted in 2007 provides the legal foundation to the European single market for payments.

Fast and easy licensing. Business-friendly regulation

The Bank of Lithuania combines the functions of a central bank and the financial supervisory authority (regulator). Business-oriented regulatory behavior and significantly lower finance institution incorporation, licensing, and maintenance costs are what make Lithuania the preferred jurisdiction for finance business people from around the world.

Services provided by the Payment Institution

• Services enabling cash to be placed on a payment account;
• Services enabling cash withdrawals from a payment account;
• Execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;
• Execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;
• Issuing and/or acquiring of payment instruments;
• Money transfers;
• Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunications terminal equipment, digital or IT devise and the payment is made to the telecommunications network or IT system operator, acting only as an intermediary between the supplier of the goods or services and the payment service user;
• Payment Initiation Service (PSD2 implementation).
• Account Information Service (PSD2 implementation).

Pan-European payment license issued in Lithuania provides a significant competitive advantage and opens up the European financial market at significantly lower incorporation and operational costs. Lithuania and primarily its capital Vilnius became a new hub for the FinTech companies focused on international financial markets. Favorable regulatory and tax environment, excellent infrastructure, fastest internet, and quality talent pool makes Lithuania and primarily it’s capital Vilnius attractive to large international financial institutions as well as FinTech start-ups.

Direct connection to SEPA through the CENTROlink system managed by the Bank of Lithuania (central bank) and SEPA payments at low cost

EPA Credit Transfers, Instant payments, Direct Debits at low cost.

SEPA credit transfer (SCT) and instant payment (SCT Inst) fees:

1. for each payment (up to 30 millions) submitted and executed – EUR 0.01;
2. for each payment (exceeding 30 millions) submitted and executed– EUR 0.008;
3. for each payment received and executed – EUR 0.01.

SEPA direct debit (SDD) service fees:

1. for each SDD instruction (up to the first million) submitted and executed – EUR 0.05;
2. for each SDD instruction (exceeding the first million) submitted and executed – EUR 0.03;
3. for each SDD instruction received and executed – EUR 0.02.

Reasons why Lithuania is the top jurisdiction for Payment Institution licensing

• No particular requirement for company management to reside in Lithuania.
• Application for a license submitted without establishing a company. The incorporation of a company starts only after the license granted.
• Fast licensing process. Issuing of Payment an Electronic Money Institution license within a period of 3 months or even faster. Business-oriented regulation.
• Documents can be submitted in English and amended “on the go” instead of formal writing forth and back.
• Possibility for non-banks to get their own sorting codes for individual client IBAN accounts as a bank.
• Non-banks have direct access to the Single Euros Payment Area (SEPA) through the CENTROlink payment system managed by the Bank of Lithuania (Regulator). Only the banks in other jurisdictions can access SEPA directly. The Bank of Lithuania creates an infrastructure for instant payments that according to European Instant Payments Initiative will guarantee pan-European reach.
• PSD2 implementation allowing Payment Initiation Service (PIS) and Account Information Service (AIS).
• Remote client verification. Innovative “know your customer” processes for remote client verification allows to open the accounts without the physical presence of the client.
• The license allows provision of the financial services in all European Union without any additional licensing. Fast and easy license passporting procedure to other European EU/EEA jurisdictions.
• The Bank of Lithuania is committed to support start-ups and not issue punishment for minor infringements during the first year of operation.
• Start-up visa. Special visas for citizens of non-EU/EEA countries running innovative businesses in Lithuania.

ECOVIS experience in Payment Institution licensing

Being part of ECOVIS International consulting network present in more than 80 counties around the world ECOVIS ProventusLaw currently considered as one of the most experienced financial licensing advisors in Lithuania. ECOVIS licensed more than 30 payment and electronic money institutions in Lithuania including well-known names as deVere, Nium, Contis Group setting up their European operations in Vilnius. ECOVIS ProventusLaw provides all the necessary services for the Payment Institution licensing including preparation of licensing documentation, financial calculations and business plan, representation at the Bank of Lithuania during the licensing process, company incorporation, office registration, advice on IT, HR, compliance, and other issues arising during the incorporation of payment business in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance, and other legal services for the operational business.

Electronic Money Institution license

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