Payment License

Payment License in 2026 

• At Tetra Consultants, our team of lawyers, licensing specialists, compliance professionals, and accounting and tax advisors will assist you in seamlessly obtaining a Payment License in 2026. We provide end-to-end support including jurisdiction advisory, company incorporation, preparation and submission of the payment license application, regulatory compliance advisory, and corporate bank account opening, ensuring your business meets all licensing and operational requirements set by the relevant financial regulatory authorities in the chosen jurisdiction. 

• Tetra Consultants professionals help international business owners in getting Payment Institution (PI), Electronic Money Institution (EMI), and Payment Service Provider (PSP) licenses across all the major financial jurisdictions.  

• Our team help you select jurisdiction, company incorporation, regulatory advisory under the frameworks like PSD3, PSR, the Uniform Money Services Act (UMSA), and global AML directives that includes 6AMLD, preparation of licensing documentation, and post-licensing operational support.  

What is a payment license in 2026?

• A standard payment license is an authorization for the holder to provide services related to the payment systems. A typical payment license allows the financial institution to provide services such as money remittance, account issuance, and e-money issuance services. However, it is to be noted that payment licenses do not automatically allow you to conduct digital asset payment services. For more information, please refer to our cryptocurrency license page.   

Global payment licensing frameworks in 2026

• Payment licensing frameworks differ on the basis of the jurisdiction as well as regulatory objectives. Major fintech jurisdictions regulate their payment service provider under specific legislative frameworks this includes: 

United States 

• License is commonly obtained through the state Money Service Business (MSB) licenses. 

• Supervision of the licenses is done by the Nationwide Multistate Licensing System (NMLS ID/ NMLS Consumer Access). 

• Payment providers should adhere to the Uniform Money Services Act (UMSA) that is adopted by several US states. 

• Reporting obligations consists of Suspicious Activity Reports (SAR) and FinCEN Form 8300 for reporting large cash transactions. 

European Union and United Kingdom  

• Payment institutions operate under the Payment Services Directive Framework, transitioning slowly from PSD2 to PSD3 and the Payment Services Regulation (PSR). 

• Regulators need strict safeguarding requirements in order to protect customer funds and payment institutions, leading them to offer services such as:  
  • Payment Initiation Services (PISP) 
  • Account Information Services (AISP) 

• Licensed institutions can also access pan-European payment infrastructure this includes SEPA instant for real-time euro payments.  

Global digital assets and crypto regulations 

• For fintech companies providing digital asset payment services, regulators will have to comply with the international AML standards, this consists of: 

• FATF Travel Rule (Recommendation 16) 

• Anti-money laundering frameworks like 6AMLD 

What are the types of payment licenses?

• Depending on your business goals and objectives there are different types of payment licenses available as mentioned below: 

Payment Institution License

• The payment institution license only permits you to provide payment services that are expressly mentioned in the license. If, for example, you only have a license for payment initiation services but you also want to provide account information services in the future, you need to apply for an additional license. 

• The payment institution license or registration is also known by other names. Some call it the “PI license” where “PI” is short for “payment institutions”. 

• Payment institution licenses are issued in different jurisdictions under different names. For example, in Singapore, there are two types of payment institution licenses – Standard Payment Institution License and Major Payment Institution License. 

• For example, in the United Kingdom, there are Small Payment institutions (SPI) and Authorized Payment Institutions (API). 

• Under the European Open Banking framework by the Payment Services Directive (PSD2) and it further expanded under the upcoming Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR). Payment institutions can also be allowed to offer specialized services such as Payment Initiation Services (PISP) and Account Information Services (AISP).  

• Payment Initiation Service Providers (PISPs) enable fintech platforms to initiate payments directly from a user’s bank account without requiring a traditional card network, while Account Information Service Providers (AISPs) are authorized to aggregate financial data from multiple bank accounts to provide users with consolidated financial insights. These services operate through secure Open Banking APIs, enabling licensed fintech companies to connect directly with customer bank accounts while maintaining regulatory compliance and consumer data protection. 

EMI (E-money institution license)

• If you do not simply want to provide payment services but also issue electronic money, then a little more is required. In this case, you need a license as an e-money institution. A license as an e-money institution not only allows you to issue e-money but also to provide all payment services. 

• In other words, an e-money institution may automatically provide all types of payment services. The license as an e-money institution is also sometimes known as an “e-money license” or an “EMI license”. 

• E-money licenses of different jurisdictions will have different characteristics to offer. Some of the more popular e-money licenses include the Poland EMI license, Lithuania EMI license, and Latvia EMI license. 

Payment Service Provider License (PSP)

• A payment service provider (PSP) license allows financial institutions to provide the payment services on behalf of a third party, under the regulation of the proposed jurisdiction. 

• The kind of services that a payment service provider license allows you to conduct can include the taking of deposits from the third party, transferring money on behalf of the third party, offering such other services like the security of financial data, transactional reporting, currency processing for cross border transactions under different currencies. 

• Therefore, a typical payment service provider license will enable you to act as a mediator between the clients, merchants, and financial institutions for the settlement of funds from the client’s account to the merchant’s account. In some jurisdictions, PSPs are also known as payment processors and merchant service providers. 

• A payment service provider license can be termed differently in different jurisdictions. For example, In New Zealand, a payment service provider is mostly referred to as the New Zealand Financial Service Provider License (FSP) regulated by the Ministry of Economic Development. 

Who is the issuing authority of a payment license?

• A payment license is issued by the central banking authority of the proposed jurisdiction under the legislation so enacted to regulate such entities. 

• Depending on the jurisdiction, payment licenses may be issued or supervised by different types of financial regulatory authorities. These typically include: 

• Central Banks, which oversee financial stability and payment systems  

• Financial Conduct Authorities, responsible for regulating financial institutions and consumer protection  

• Financial Intelligence Units (FIUs) that supervise anti-money laundering compliance for money service businesses  

• Specialized fintech regulators or financial supervisory authorities responsible for licensing payment institutions and electronic money institutions 

• Examples of regulatory authorities responsible for issuing or supervising payment licenses include: 

•  The Bank of Lithuania which is the financial service regulator administers, and issues Lithuania EMI licenses as empowered under the regulating statute 

• Monetary Authority of Singapore (MAS), which issues Standard Payment Institution and Major Payment Institution licenses under the Payment Services Act  

• Financial Conduct Authority (FCA) in the United Kingdom, responsible for authorizing Payment Institutions and Electronic Money Institutions  

• Central Bank of The Bahamas, which supervises payment service providers and electronic money operators  

• These regulators ensure that licensed payment institutions comply with strict requirements relating to capital adequacy, safeguarding of client funds, AML/CFT compliance, and operational risk management. 

What are the regulatory requirements and documents for obtaining a payment license?

For obtaining a payment license, the international regulator will most likely ask you for the following things- 

Minimum capital requirement 

• The first and foremost point of consideration is to have met the specified minimum capital requirement by the regulator. Additionally, for payment licenses, a regulator may also ask for a combination of base capital, risk-based capital, and expense-based capital. 

• For example, the Dubai Financial Service Authority (DFSA) requires a Dubai International Financial Centre based PSP to provide for the aforementioned combination of capital requirements wherein base capital can be US$500,000 for PSPs that issue stored value while the requirement of base capital is US$200,000 for PSPs that does not issue stored value. 

• Similarly, in the Bahamas, the Central Bank of The Bahamas requires an entity to have a minimum capital requirement of US$100,000 to obtain the payment service provider license. 

• Accordingly, the Monetary Authority of Singapore (MAS), requires a Singapore standard payment institution to have minimum paid-up capital of S$100,000 and Singapore major payment institution to have minimum paid-up capital of S$250,000 for obtaining the respective licenses. 

• On the other hand, for a Lithuania EMI license, the entity is required to meet the minimum capital requirement of EUR 350,000. 

Safeguarding of Client Funds 

• Payment institutions operating under regulatory frameworks such as the Payment Services Directive (PSD2) and the upcoming Payment Services Directive 3 (PSD3) are required to implement safeguarding mechanisms to ensure that customer funds remain protected at all times. 

• Safeguarding requirements generally include: 

• Segregation of client funds in dedicated safeguarding accounts separate from the company’s operational funds  

• Insurance policies or guarantee schemes to protect customer balances in case of insolvency  

• Daily reconciliation procedures to ensure accurate tracking of customer funds and payment transactions  

• These safeguarding measures are designed to enhance consumer protection and financial stability within the global payments’ ecosystem 

Ownership of share capital 

• For a payment license, a regulatory authority may not allow having full ownership of the business. Therefore, in some jurisdictions, a wholly-owned foreign company may not be allowed to operate especially for the businesses having the payment risk. 

• For example, in Ghana, there should be a minimum of 30% of the ownership of share capital in the favor of Ghanaians. 

Number of Directors 

• For most of the payment licenses, the regulator would ask you to meet the requirement of having the specified number of directors and even if there is no requirement of having a specific number of directors, these must meet certain eligibility criteria, among which they must be of good character, have the necessary experience to manage and complete their daily activities, as well as meet the reporting requirements imposed by the law. 

• For example, in Lithuania, companies applying for EMI licenses must meet the requirement of having at least 1 director who should be resident in Lithuania. 

Comparison of popular payment licensing jurisdictions in 2026

• Different jurisdictions provide different regulatory frameworks, capital requirements, and operational benefits for payment institutions. Tetra Consultants’ lawyers and licensing specialists assists clients in selecting the most suitable jurisdiction based on their business model, licensing scope, operational costs, and regulatory requirements. The table below offers a general comparison of multiple popular jurisdictions where fintech companies usually get payment or electronic money licenses.  

What is the procedure for obtaining a payment license in 2026?

Different nations have different methods, regulations, and processes for setting up and applying for payment licenses. Tetra Consultants has compiled a list of the more prevalent processes involved in obtaining a payment license in a normal engagement.