EMI License | Page 2

What Is an EMI License?

An Electronic Money Institution license — otherwise referred to as an e-money license, electronic money license, or emoney license — can best be described as Authorisation to issue electronic money and provide specified payment services by a non-bank institution. It includes online checkout solutions, cashless spending cards, electronic funds remittance, and e-wallet management.

An e-money license enables non-bank institutions to offer compliant, secure e-money and payment solutions.

EMIs do not take deposits or lend. Customer funds must be safeguarded (e.g., held in segregated accounts with credit institutions or protected via insurance/guarantee) to protect users if the firm fails. Therefore, this kind of certification becomes very important for fintech organisations that would like to furnish settlement and wallet offerings but do not wish to be banks.

The process of EMI licensing is not a bureaucratic formality — it is a legal imperative intended to shield users and sustain confidence within the cashless payment infrastructure. Harsh standards must be fulfilled by every EMI relating to AML, CTF, and KYC outlines.

Once this type of license has been acquired, an organisation will then have the allowance to:

• Issuance and reimbursement of stored value
• Facilitate wallet-based payments and settlements
• Furnish merchant acquiring and payment handling solutions
• Give account info and initiate a transaction

Who Gives an EMI License?

The EU outlines 2009/110/EC and PSD2 say that national supervisory bodies in each place give out and watch over EMI approvals. Examples are:

• Bank of Lithuania – Lithuania
• Central Bank of Cyprus – Cyprus
• MFSA – Malta
• Central Bank of Portugal – Portugal

Some regulators offer Small EMI (SEMI) authorizations. Small EMIs (where available) have local, volume-limited permissions and no EEA passporting. Smaller authorizations are used, as a rule,  by startups before they graduate to the full-scale EMI license that provides regulatory mobility across EU/EEA.

To get this type of certification, a candidate must meet these core terms:

• Capital of at least €350,000 (may vary from one region to another).
• A registered office and regulatory-approved leadership physically present within the country of licensing.
• An in-depth strategy accompanied by financial forecasts and process models.
• Back-office that guarantees  compliance with AML and CTF legislation.
• Safety networks that implement GDPR and cater accurate disclosure.
• Consistent reporting to competent authorities.

Ownership, proper internal controls and risk checks must be in place and also be disclosed. Supervisory review is conducted prior to issuing this type of license.

How to Get an EMI License

Normally, receiving this type of license can take between 6-12 months. Here is the normal workflow:

• Preparation: Define your commercial strategy, choose a direction, and gather all demanded paperwork.
• Organisation submission: Form an incorporated entity plus set up a corporate account.
• Fulfil the requirements along with the business plan, financial forecasts, governance & risk, AML/CTF policies, safeguarding arrangements and proof of initial capital.

The authorities will undertake an assessment of adherence procedures, cybersecurity architecture, and leadership competence. Once cleared, your organisation becomes an officially regulatory- approved EMI.

Advantages of Having an EMI License

The holding of this license presents fintech organisations with notable advantages.

• Recognition in the eyes of the law: Carry out activities within regulated monetary frameworks all over the EU.
• Client trust: Assets of customers are safeguarded, strengthening platform credibility.
• Accessibility to market: Passportability of EMI licenses across the EEA.
• Business flexibility: New monetary offerings can be provided without a full banking license.
• Reduced risk: Client funds are kept separate from operational funds, lowering insolvency risks.

How an EMI License Protects Your Business and Client

A license implies that a legal entity will be working in a regulated monetary framework. It can be either EU-based or UK-based, depending upon which jurisdiction you have chosen for your future money transfer organisation.

The easiest and fastest way to get it is to buy EMI license through pre-established legal entities — many certified operators already have them formed and set up to operate immediately.

Customer funds must be safeguarded (e.g., segregated with a credit institution or protected via an insurance/guarantee arrangement) per the applicable rules. This reduces any possible risks associated with non-completion by separating client monies from operative funds (i.e., house money cannot pay wages).

Besides improving supplier relationships, such provisions also promote better end-client relationships since their assets are defended under local laws..

Choosing the Right Jurisdiction

Choosing the right jurisdiction forms an essential part of any EMI licensing strategy.

• Lithuania: Famous for quick and efficient processing of EMI licenses.
• Malta: Offers strong legal protection and attractive taxation.
• Cyprus: Combines EU membership with a growing fintech sector.
• United Kingdom: FCA-regulated environment with a global reputation.
• Spain and Portugal: New fintech hubs encouraging monetary innovation.

The jurisdiction should match your commercial structure, client base, and growth goals.

EMI Licensing Cost

Fees differ by country, organisation framework, and complexity. Actual cost and timeline depend on regulator queries (‘stop-the-clock’), ownership complexity, and staffing/substance between €50,000 and €250,000.

Some specialist firms have an EMI license for sale — firms that are already authorized — but this does not exempt a buyer from verifying compliance before purchase.

The general workflow usually takes between 6 to 12 months and might be broken down as follows:

• Document preparation: 1–2 months
• Application review: 3–6 months
• Final approval: 1–3 months

Conclusion

As digital finance keeps changing global business, the Electronic Money Institution license sits at the heart of monetary creativity. It does more than just allow firms to work — it proves their honesty, builds trust with clients, and gives entry to new markets.

No matter if your plan is to get an EMI license from a current provider or apply straight through a national regulator, the main parts for success stay the same: following rules, being open, and maintaining control of the workflow.

This type of license is not just a document — it is your company’s entryway to the future of safe, worldwide digital funds.

FAQ:

What is an EMI license?

The many new-wave non-bank financial organisations that wish to create e-money and offer cashless transactions under strict compliance plus consumer protection rules require an EMI license — i.e., approval of supervisory organs.

What does EMI mean?

EMI refers to Electronic Money Institution, a licensed entity authorized to validate, store, and manage e-money and payment transactions.

What is an EMI in fintech?

In the broader sense of the fintech industry, an EMI denotes an organisation facilitating e-wallets, digital transfers, prepaid cards, and other auxiliary offerings without being a traditional bank.

What is EMI in BSP?

In the BSP context, EMI refers to institutions regulated in aspects of transparency, fund shielding, and AML and CTF adherence.

Who needs an EMI license?

Any business issuing e-wallets, providing e-payment solutions, or managing e-money transfers needs to have this type of certification to operate legally within regulated financial markets.