Payment Institution Licence Advisory — UK, EU & Global
A payment institution licence allows firms to provide payment services such as money transfers, payment processing, and account information services. Whether you are a fintech startup or an established business expanding into payments, we guide you through every step.
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What is a Payment Institution Licence?
A payment institution (PI) licence authorises firms to provide and execute payment services as defined under the Payment Services Regulations 2017 in the UK and the Payment Services Directive (PSD2) across the European Union. Payment services include executing payment transactions, issuing payment instruments, money remittance, payment initiation services, and account information services.
The regulatory framework governing payment institutions is designed to ensure that firms handling customer funds operate with appropriate safeguards, governance structures, and anti-money laundering controls. In the UK, the Financial Conduct Authority (FCA) is the competent authority responsible for authorising and supervising payment institutions. Across the EU, each member state has its own national competent authority, although the regulatory requirements are harmonised under PSD2.
For any business that wishes to provide payment services commercially, obtaining a payment institution licence is not optional — it is a legal requirement. Operating without authorisation is a criminal offence in most jurisdictions and exposes the business to enforcement action, reputational damage, and potential personal liability for directors. Beyond legal compliance, holding a PI licence signals credibility and trust to partners, banks, and customers, and is often a prerequisite for accessing banking relationships and payment scheme memberships.
The application process varies by jurisdiction but typically involves demonstrating adequate initial capital, establishing robust governance and compliance frameworks, submitting a detailed business plan and programme of operations, and passing fit and proper assessments for key individuals. Timelines range from three months in more efficient jurisdictions to twelve months or more in others.
Where Can You Obtain a Payment Institution Licence?
We support licensing in the following jurisdictions.
FCA
United Kingdom
Capital: £20k–£125k
Timeline: 6–12 months
UK market access — no EEA passporting post-Brexit
Bank of Lithuania
Lithuania
Capital: €20k–€125k
Timeline: 3–6 months
EU-wide passporting across all EEA member states, SEPA access
Central Bank of Ireland
Ireland
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, common law jurisdiction, English-speaking
DNB
Netherlands
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, strong fintech ecosystem
MFSA
Malta
Capital: €20k–€125k
Timeline: 4–8 months
EU-wide passporting, English-speaking, competitive costs
CSSF
Luxembourg
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, premium financial centre
BaFin
Germany
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, largest EU economy
ACPR
France
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, second-largest EU economy
Bank of Spain
Spain
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, gateway to Latin America
CBC
Cyprus
Capital: €20k–€125k
Timeline: 4–9 months
EU-wide passporting, competitive tax, English-speaking
NBB
Belgium
Capital: €20k–€125k
Timeline: 6–12 months
EU-wide passporting, home of EU institutions
FINTRAC
Canada
Capital: No capital requirement
Timeline: 6–8 weeks
Fast registration, growing fintech market
CBUAE
United Arab Emirates
Capital: AED 2M+
Timeline: 6–12 months
Middle East gateway, growing payments hub
MAS
Singapore
Capital: SGD 100k–250k
Timeline: 6–12 months
Asia-Pacific gateway, world-class regulator
CNB
Czech Republic
Capital: €20k–€125k
Timeline: 4–8 months
EU-wide passporting, competitive costs
United Kingdom — Payment Institution Licence
Overview
The UK offers two types of payment institution authorisation: the Authorised Payment Institution (API) for firms providing payment services without transaction limits, and the Small Payment Institution (SPI) for firms with average monthly transactions below €3 million. The FCA is the sole regulator responsible for assessing and granting PI authorisation in the UK.
Key Requirements
Authorised PIs must hold minimum initial capital ranging from £20,000 to £125,000 depending on the payment services offered. Directors and beneficial owners must pass fit and proper assessments. A comprehensive business plan, programme of operations, compliance monitoring programme, and financial crime framework must be submitted. Safeguarding arrangements for customer funds are mandatory from day one of authorisation.
Application Process
The FCA application process typically takes 6 to 12 months from submission to determination. The process begins with an initial regulatory strategy assessment, followed by drafting the application pack including the business plan, programme of operations, compliance and AML frameworks, financial projections, and governance documentation. Once submitted, the FCA conducts a detailed review and may raise information requests. The FCA scrutinises the viability of the business model, the adequacy of systems and controls, and the fitness and propriety of key individuals.
Why United Kingdom?
The UK remains one of the world's most respected financial services jurisdictions. An FCA-authorised PI benefits from the credibility associated with UK regulation, access to the UK's deep banking and payments infrastructure, and proximity to a sophisticated fintech ecosystem. However, since Brexit, UK-authorised firms no longer benefit from EEA passporting and must obtain separate authorisation to operate within the EU.
Full United Kingdom guide →Lithuania — Payment Institution Licence
Overview
Lithuania has become one of the most popular EU jurisdictions for payment institution licensing thanks to the Bank of Lithuania's efficient and transparent application process. As an EU member state, a Lithuanian PI licence provides passporting rights across all EEA member states.
Key Requirements
Capital requirements mirror PSD2 minimums at €20,000 to €125,000 depending on services. Firms must appoint at least one local director, establish a local office, and implement robust AML/CFT frameworks compliant with Lithuanian and EU requirements.
Application Process
Lithuania offers one of the fastest PI licensing timelines in the EU, typically 3 to 6 months. The Bank of Lithuania has a dedicated fintech team and provides pre-application consultations.
Why Lithuania?
Lithuania combines speed, cost efficiency, and full EU market access. The country has actively positioned itself as a fintech hub, offering a supportive regulatory environment, competitive operating costs, and direct access to SEPA payment infrastructure. Over 130 EMIs and PIs are licensed in Lithuania.
Full Lithuania guide →Ireland — Payment Institution Licence
Overview
Ireland is a leading EU jurisdiction for payment institution licensing, particularly attractive to UK firms seeking continued EU market access post-Brexit. The Central Bank of Ireland is the competent authority.
Key Requirements
Standard PSD2 capital requirements apply. Ireland requires substance, including local directors and a physical office presence. Comprehensive governance, compliance, and AML documentation is required.
Application Process
The application process typically takes 6 to 12 months. The Central Bank conducts a thorough review with multiple rounds of information requests.
Why Ireland?
Ireland offers a common law legal system familiar to UK firms, an English-speaking business environment, and a strong reputation as a European financial services hub. Post-Brexit, many UK-based firms have chosen Ireland as their EU base.
Full Ireland guide →Netherlands — Payment Institution Licence
Overview
The Netherlands, regulated by De Nederlandsche Bank (DNB), is a well-established jurisdiction for payment institution licensing within the EU. Dutch-authorised PIs benefit from full EEA passporting.
Key Requirements
Standard PSD2 capital requirements. DNB requires robust governance, a strong compliance function, and detailed AML/CFT frameworks. Local management presence is expected.
Application Process
Applications typically take 6 to 12 months. DNB is known for a thorough but fair review process.
Why Netherlands?
The Netherlands has a world-class financial infrastructure, a highly educated workforce, and a central European location. Amsterdam is home to a thriving fintech community.
Full Netherlands guide →Malta — Payment Institution Licence
Overview
Malta, regulated by the Malta Financial Services Authority (MFSA), offers PI licensing with full EU passporting rights. Malta has positioned itself as a fintech-friendly jurisdiction.
Key Requirements
PSD2 capital requirements apply. Local substance is required including local directors. AML frameworks must comply with EU standards.
Application Process
Applications typically take 4 to 8 months, making Malta one of the faster EU options.
Why Malta?
Malta combines EU passporting with English as an official language, competitive operating costs, and a regulator that is approachable and engagement-focused.
Full Malta guide →Luxembourg — Payment Institution Licence
Overview
Luxembourg is regulated by the Commission de Surveillance du Secteur Financier (CSSF) and is one of Europe's premier financial services jurisdictions for payment institution licensing.
Key Requirements
PSD2 capital requirements. Comprehensive governance and compliance frameworks. Local substance including directors and physical presence required.
Application Process
6 to 12 months. The CSSF conducts thorough assessments with high standards for application quality.
Why Luxembourg?
Luxembourg is a globally recognised financial centre with deep expertise in fund administration and payments. Its multilingual business environment and central location make it an attractive base.
Full Luxembourg guide →Germany — Payment Institution Licence
Overview
Germany's Federal Financial Supervisory Authority (BaFin) oversees payment institution licensing. As the EU's largest economy, Germany offers significant commercial opportunities.
Key Requirements
PSD2 capital requirements. BaFin expects robust governance, comprehensive AML frameworks, and meaningful local substance. German-language documentation may be required.
Application Process
6 to 12 months. BaFin is thorough and systematic in its approach.
Why Germany?
Germany provides access to Europe's largest consumer market and a mature financial services ecosystem. Frankfurt is a major European financial hub.
Full Germany guide →France — Payment Institution Licence
Overview
France's Autorité de Contrôle Prudentiel et de Résolution (ACPR) regulates payment institutions. France is the EU's second-largest economy with a growing fintech sector.
Key Requirements
PSD2 capital requirements. Comprehensive documentation in French typically required. Local substance and governance arrangements expected.
Application Process
6 to 12 months. The ACPR applies rigorous assessment standards.
Why France?
France offers access to a large, affluent consumer market and has actively supported fintech growth through regulatory innovation.
Full France guide →Spain — Payment Institution Licence
Overview
The Bank of Spain regulates payment institutions under PSD2. Spain's cultural and linguistic ties to Latin America make it a strategic base for firms targeting both European and Latin American markets.
Key Requirements
PSD2 capital requirements. Local substance required. Comprehensive AML/CFT documentation expected.
Application Process
6 to 12 months. The Bank of Spain has built increasing capacity for processing fintech applications.
Why Spain?
Spain combines EU market access with strong commercial links to Latin American markets, making it an excellent base for firms with dual-hemisphere ambitions.
Full Spain guide →Cyprus — Payment Institution Licence
Overview
The Central Bank of Cyprus (CBC) regulates payment institutions. Cyprus has emerged as a popular EU jurisdiction for fintech licensing with competitive costs and a supportive environment.
Key Requirements
PSD2 capital requirements apply. Local substance including directors required. AML frameworks must comply with EU directives.
Application Process
4 to 9 months. The CBC has developed significant experience in processing payment institution applications.
Why Cyprus?
Cyprus offers EU passporting with competitive operating costs, favourable tax arrangements, an English-speaking business environment, and a supportive regulatory approach to fintech.
Full Cyprus guide →Belgium — Payment Institution Licence
Overview
The National Bank of Belgium (NBB) regulates payment institutions. As the home of EU institutions, Belgium offers proximity to European policymakers and a strong financial services infrastructure.
Key Requirements
PSD2 capital requirements. Comprehensive governance, compliance, and AML documentation. Local substance expected.
Application Process
6 to 12 months. The NBB is thorough in its assessment process.
Why Belgium?
Belgium's central location, proximity to EU institutions, and well-developed financial infrastructure make it an attractive base for internationally-focused payment firms.
Full Belgium guide →Canada — Payment Institution Licence
Overview
Canada requires money services businesses providing payment services to register with FINTRAC. This is a registration-based regime rather than a full licensing framework.
Key Requirements
No minimum capital requirement. Firms must implement comprehensive AML/CFT compliance programmes, appoint a compliance officer, and maintain detailed record-keeping.
Application Process
FINTRAC registration can be completed in 6 to 8 weeks.
Why Canada?
Canada offers a fast and relatively straightforward registration process, a growing fintech market, and proximity to the United States.
Full Canada guide →United Arab Emirates — Payment Institution Licence
Overview
The Central Bank of the UAE (CBUAE) regulates payment service providers under the Retail Payment Services and Card Schemes Regulation. The UAE is a rapidly growing payments market.
Key Requirements
Minimum capital starts at AED 2 million for stored value facilities. Local incorporation, governance, AML frameworks, and technology risk management required.
Application Process
6 to 12 months depending on the payment services sought and complexity of the business model.
Why United Arab Emirates?
The UAE provides access to a high-growth payments market and serves as a gateway to the broader Middle East, North Africa, and South Asia regions.
Full United Arab Emirates guide →Singapore — Payment Institution Licence
Overview
Singapore's Monetary Authority (MAS) regulates payment services under the Payment Services Act 2019. MPS or SPS licences are required depending on payment volumes.
Key Requirements
Capital requirements range from SGD 100,000 to SGD 250,000 depending on licence type and services. Local directors, registered office, and comprehensive AML/CFT frameworks required.
Application Process
6 to 12 months. MAS is thorough and may request substantial additional information.
Why Singapore?
Singapore is the premier financial centre in Asia-Pacific with a globally respected regulatory framework and access to fast-growing Asian markets.
Full Singapore guide →Czech Republic — Payment Institution Licence
Overview
The Czech National Bank (CNB) regulates payment institutions. The Czech Republic offers a cost-effective EU base with full passporting rights.
Key Requirements
PSD2 capital requirements. Local substance required. Comprehensive AML and governance documentation expected.
Application Process
4 to 8 months. The CNB has built capacity for processing fintech licence applications.
Why Czech Republic?
The Czech Republic offers EU passporting with lower operating costs than Western European jurisdictions and a growing technology talent pool.
Full Czech Republic guide →Supporting Services for Payment Institution Firms
"Regulatory Counsel managed our FCA application from start to finish. Their expertise in payment services regulation was immediately evident and made a complex process straightforward."
CEO, UK Payment Services Provider
"We chose Lithuania for our PI licence based on their recommendation and were authorised in under four months. The team's knowledge of the Bank of Lithuania's expectations was invaluable."
Founder, European Fintech Startup
Related Insights
How to Get an FCA Payment Institution Licence: The Complete Guide
Everything firms need to know about FCA payment institution authorisation — API vs SPI thresholds, capital requirements, assessment criteria and common failure modes.
Lithuania vs Ireland for a Payment Institution Licence: Which Should You Choose?
A detailed comparison of Lithuania and Ireland for EU payment institution licensing — speed, cost, substance requirements and passporting after Brexit.
Payment Institution Compliance Obligations After FCA Authorisation
A comprehensive guide to the ongoing regulatory obligations UK payment institutions must meet after receiving FCA authorisation.
Frequently Asked Questions
An Authorised Payment Institution (API) can provide payment services without transaction volume limits, while a Small Payment Institution (SPI) is limited to average monthly transactions of €3 million or less. SPIs have a simpler application process and lower regulatory burden but cannot passport their services. APIs face higher capital requirements and more rigorous ongoing supervision but have no transaction volume restrictions.
Timelines vary significantly by jurisdiction. Lithuania is typically the fastest at 3 to 6 months, followed by Malta at 4 to 8 months. The UK and Ireland generally take 6 to 12 months. Canada's FINTRAC registration can be completed in as little as 6 to 8 weeks. These timelines assume a well-prepared application — incomplete or poorly drafted submissions can significantly extend the process.
Capital requirements depend on the jurisdiction and the payment services you intend to offer. In the UK and EU, minimum initial capital ranges from €20,000 (for money remittance only) to €125,000 (for full payment services including payment accounts). Some jurisdictions like Canada have no capital requirement for registration. Beyond initial capital, firms must maintain ongoing own funds calculated as a percentage of payment transaction volumes.
Yes, a PI licence obtained in any EU/EEA member state can be passported to all other EU/EEA member states. This means a firm authorised in Lithuania, for example, can provide payment services across all 30 EEA countries through freedom of services or by establishing branches. UK-authorised PIs cannot passport into the EU post-Brexit and vice versa.
Authorised payment institutions must safeguard customer funds — meaning client money must be kept separate from the firm's own funds. The two permitted methods are: (1) depositing customer funds in a segregated account at a credit institution, or (2) covering them with an insurance policy or comparable guarantee. In the UK, the FCA's PS25/12 policy statement introduces enhanced safeguarding requirements effective from 7 May 2026. Note: Small Payment Institutions (SPIs) are not legally required to safeguard but may opt in voluntarily.
Most jurisdictions require some form of local substance. In Lithuania, you need at least one local director and a registered office. Ireland requires local directors and a physical office. The UK requires a registered office address. The level of substance required varies, and we can advise on the minimum viable arrangements for your preferred jurisdiction.
Post-authorisation, payment institutions must comply with ongoing regulatory obligations including safeguarding of customer funds, regulatory reporting (typically quarterly and annually), maintaining adequate capital at all times, updating compliance and AML frameworks, notifying the regulator of material changes, and submitting to periodic supervisory reviews. We provide ongoing compliance support to ensure your firm remains in good standing.