Licensed small payment institution (PI)
Want to start with a smaller payment institution and in a reputable jurisdiction? Then Poland might the best choice for you. A Small Payment Institution allows you to perform remittances and become a card acquirer.
It is a comfortable solution for those businesses that would like to try it in practice but lack previous experience in running a payment institution. The Polish Supervisory Body, KNF, refers to this small PI as a regulatory sandbox which is recommended primarily for all kinds of start-ups in Poland, especially from the FinTech industry.
So, what can you do with a Small PI in Poland?
- Deposit cash to a payment account as well as all the operations required for operating a payment account.
- Withdraw from a payment account as well as all the operations required for operating a payment account.
- Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider:
(a) execution of direct debits, including one-off direct debits;
(b) execution of payment transactions through a payment card or a similar device;
(c) execution of credit transfers, including standing orders.
- Execution of payment transactions if such funds are covered by a credit line by a payment service user.
- Issuing of payment instruments and/or acquiring of payment transactions.
Of course, as this is a Small Payment Institution, there are some limits. The average total amount of payment transactions from the previous 12 months carried out by the Small Payment Institution cannot exceed an amount equivalent to EUR 1 500 000 per month.
In the event such limit is exceeded, the Small Payment Institution has two options: either (1) reduce the extent of operations or (2) apply for the status of full Payment Institution.
The other limitation is that it may store users’ funds on payment accounts, which total amount cannot exceed the equivalent of €2000 in Polish currency.
Also as is the case with limited institutions in other jurisdictions, it may operate only within Poland.
Nevertheless, the advantages of this institution are clear, and the legal procedure is relatively easy.
Therefore, in case you decided to opt for a Small Payment Institution in Poland, contact Aniva Consulting and we will help you complete the process and take care of the rest for you!