Luxembourg payment licenses

Luxembourg payment licenses

E-payments market is constantly evolving, which leads to the emergence of new legislative provisions and norms regulating this type of activity. Firms that offer such services are subject to regulation by EU Directives and oversight by official bodies in specific jurisdictions. Payment institution license Luxembourg cover a variety of services, from providing payment infrastructure to users to payment transactions between individuals. This list, in particular, includes automatic currency conversion at retail outlets, processing of gift cards or discount vouchers provided in e-form, so on.

EMI in Luxembourg

Additionally to issuing e-money, firms holding local payment licenses may engage in provision of payment institution services. EMIs are allowed to provide credit loans and carry out any operations involving electronic and conventional payment means.

EMI or PI in Luxembourg are subject to the PSL, as amended by PSD1/PSD2. PSD2 was formed to keep pace with new technological mechanisms in payment industry and to contribute to Fin-Tech firms wanting to engage in payment services provision, and guaranteeing cybersecurity in European domestic community. PSD2 increased services monitoring frames in Europe and was the first to include other providers in areas of ​​harmonized EU regulations. 

Modifications have been made to the rules of doing commercials, which are aimed at strengthening the safeness of the rights of customers and ensuring a fair order of competition, and proper functioning of accepted norms of transparence of operations. 

Additionally, two new categories of providers have been added to Luxembourg payment system license: PISP and AISP. These companies don’t own user assets, and may use customers’ account data and transmit payment details.

Licenses for sale in Luxembourg

How to obtain an Electronic money license in Luxembourg

Before getting Luxembourg EMI license, meetings are held with the CSSF regulators. After applying for a license, a preliminary assessment of the professional company suitability and its accordance with designated local regulations is carried out. Prior to considering application, CSSF meets with companies to formally present structure and communicate with responsible representatives. In consideration period, regulator may contact entrepreneurs requesting any additional data.

  1. Main office needs to locate in Luxembourg. Firm must offer its services within Principality and hire local staff.
  2. Critical issues outsourcing is permissible, but cannot greatly degrade the quality of the firm’s internal controls and CSSF’s monitor of company’s legislative responsibilities. Firms providing financial services may utilize cloud platforms to store information as it said in provisions of CSSF 17/654.

PI and EMI undertake to pay an annual fee, the amount of which depends on the number of operations performed in the previous period:

  • 29 thousand euros up to 1 bln operations;
  • 37 thousand euros for 1+ bln operations.

Companies holding Luxembourg EMI licenses can operate in other EU countries on cross-border passports basis or through the branch office in the required jurisdiction. To do this, you must additionally notify the regulator of your intentions.

E-Money license in Luxembourg is provided exclusively to enterprises legally registered in jurisdiction. Under PSL provisions, min capital for PIs and EMIs must be:

  • 20 thousand – 125 thousand euros for PI, considering services range;
  • 350 thousand euros for e-money facility.

Licensing stages

  1. Official meeting with regulative authority.
  2. Sending applications and paying state fees.
  3. Regulative body must consider applications and claim for additional data if needed.
  4. After verification, CSSF sends a report to Finance Ministry that organization can obtain permission.

Often, PI/EMI licensing applications are reviewed 4-12 months. In each case, the terms of licensing will be individual.If you intend obtaining a Luxembourg EMI, please contact our specialists. We are ready to provide you with full professional advice, explaining all the nuances of certain aspects. In addition, we have an extensive list of shelf companies for sale in over a hundred jurisdictions.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

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