Licensed payment institution
Is the European Union (EU) payment license the right one for your clients?
Do you need a reputable license for card acquiring?
Want to be in the SEPA area?
Then – Lithuanian Payment Institution (PI) license is the one that can meet your demands!
What can I do with a Payment Institution license in Lithuania?
Here’s a summary:
- Executions of standard payment transactions – this means that you can transfer funds from and to a payment account through a payment service provider (either the same, so it will be a P2P transfer, or to another payment service provider). Moreover, the payment service provider may provide additional services e.g., direct debits, payment transactions through the use of a debit/credit card (or prepaid card), standing orders and so on.
- Deposits from other payment methods to a payment account and their operations
- Withdrawals to other payment methods from a payment account
- Card issuing (see explanation below)
- Card acquiring (see explanation below)
- Money transfers (remittance)
- Money exchange (certain PIs work as money exchangers or currency exchangers under this license, so if that’s what you need, this license is recommended)
- Payment initiation service
- Account information service
- Ancillary services related to payment services (custody, data collection, management)
- Operation of payment systems
Minimum capital requirements are based on the type of services provided, the maximum being €125,000.
Further, you can take advantage of the PI also for card issuing or card acquiring and benefit from card transactions of your merchants.
What are the limits on a small PI? Here’s the information:
With regards to its payment activities, there is a limit that small PI license companies in Lithuania cannot exceed without applying to be authorized as a fully licensed payment institution. In the event the small PI does not apply for a full PI license once the threshold is exceeded, the small PI license will be withdrawn. The limit for Small PI is set in a form of the average of the total amount of payment transactions executed over the previous 12 months, which may not exceed the limit of €3,000,000.00 a month.
Advantages of PI or small PI in Lithuania:
- SEPA and Target2
- Fintech-friendly environment
- EU reputation
- Educated manpower
- EU passporting
- Regulatory sandbox
- English used standardly
- Fast and cost-effective authorization process
- Generating unique IBANs for clients
- Good standing banks