Perfect solution for pan-European and global payment processing. Equity capital – from EUR 20 000 to EUR 125 000. Licensing time – up to 3 months.
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 the Europe.
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 the Europe. European Union Payment Services Directive adopted in 2007 provides the legal foundation to the European single market for payments.
The Bank of Lithuania combines the functions of a central bank and the financial supervisory authority (regulator). Business oriented regulatory behaviour and significantly lower finance institution incorporation, licensing and maintenance costs is what makes Lithuania preferred jurisdiction for the finance business people from around the world.
Fast and easy licensing. Friendly regulation
- 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 device 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 significant competitive advantage and opens up 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. Favourable regulatory and tax environment, excellent infrastructure, fastest internet and quality talent pool makes Lithuania and primarily its capital Vilnius attractive to large international finance institutions as well as FinTech start-ups.
Reasons why Lithuania is 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. 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 get own sorting codes for individual client IBAN accounts as a bank.
- Non-banks have a direct access to 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 physical presence of the client.
- 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.
- No sanctions for the first year. The Bank of Lithuania is committed to support start-ups and not to 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.
Being part of ECOVIS International consulting network present in more than 60 counties around the world ECOVIS ProventusLaw currently considered as the most experienced financial advisor in Lithuania. During the period of last 12 months ECOVIS licensed in Lithuania more than 10 Payment and Electronic Money institutions including big names deVere and Instarem setting up their European operations centres in Vilnius. ECOVIS ProventusLaw provides all the necessary services for the Payment Institution licensing, including preparation of licensing documentation, representation at the Bank of Lithuania during the licensing procedure, company incorporation, office registration, advice on IT, HR, compliance and other issues rising during the incorporation of payment business in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance and legal services for the operational business.
More about FinTech companies registration and licensing in Lithuania – http://ecovis.lt/fintech/.