The stability of economic indicators is a determining factor when choosing a location for any company. That is why many companies, seeking to develop their business in Europe, obtain a payment service provider license in Germany. This land has a well-developed market where possibilities are the same for both newcomers and those who have been working in this field for many years.
But getting a PSP license in Germany is not very easy. It is not enough to have a registered legal entity. You also need to meet all the standard requirements that the regulator puts forward to enterprises applying for such a document. And the conditions for its issuance are higher than in other countries, and this often stops the investor.
It is important to understand that there are no requirements for enterprises. But if they are not met or not complied with, the regulator can limit or terminate the license issued.
Why do you need a PSP license in Germany?
The company needs to get PSP license in Germany to be able to provide the crucial services for the payment operation. Today, corporations with payment transfer license in Germany provide the following services:
- depositing funds to current accounts;
- direct debits;
- transfers of credit funds;
- transfers between plastic cards and current accounts;
- initiation of payments;
- information services;
- money transfers.
The corps has an opportunity to buy a PSP license in Germany.
Forms of payment services
To buy payment service provider license in Germany can any companies of different forms of ownership. Even non-bank organizations can provide certain types of payment services. For example, they offer deposit and withdrawal operations from the payment system.
It is important to remember that having a payment service provider license in Germany, companies are required to obtain approval from the regulator. This is especially true for the business of transferring money to the accounts of third parties or companies. This form of transaction is often used in Germany.
Requirements for licensees
Before investors want to register a payment service provider in Germany, they need to consult with representatives of the regulatory control. In Germany, these are employees of the BaFIN`s, which have clear instructions for corporations seeking to obtain a money remittance license in Germany.
The most common requirements for a PSP license are:
- availability of sufficient free funds for the safe operation of the company during the establishment phase and after obtaining the license (depending on the activity, the amount can be from 20 to 350thousand euros);
- representatives of the company must themselves communicate the list of services they want to offer to their customers (a large number of services may change the prerequisites for the initial capital);
- the corporation must have a name and hire employees according to German law;
- all employees must have the necessary skills and knowledge to perform their duties;
- the corporation must have a risk surveillance system and interior control procedures for all transactions.
The app`s from the company also need to apply and provide info about the founders of the legal entity and the top executives. If the company meets these conditions, it will be able to fill out an application for the document.
Representatives of the regulator can review the application for 4 or 5 months. As a result, they can accept it, reject it or give it for revision. After the revision, the application is considered as a new application and the process of obtaining it can be postponed for the same period.
Consult our experts
The payment system license in Germany is considered a valuable asset. It can be used not only in the domestic market but also in other EU countries. In most countries of this commonwealth, the requirements are lower than in Germany, so the license from this country is highly valued in the common European markets.
To avoid delays in obtaining a PSP license in Germany, investors should contact professionals who know the procedure for submitting and issuing licenses right after consultation with the regulator. Our company employs just such employees.
Each of them has repeatedly applied in this format and the percentage of return for revision was extremely small. On our website, you can sign up for an initial consultation, and our manager will answer and help you with all the issues in this area.