Payment Institution Licence — Germany

EU-wide passporting, largest EU economy. BaFin regulated. Capital from €20k–€125k. Typical timeline 6–12 months.

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Why Germany for Your Payment Institution Licence?

Germany provides access to Europe's largest consumer market and a mature financial services ecosystem. Frankfurt is a major European financial hub.

Germany's Federal Financial Supervisory Authority (BaFin) oversees payment institution licensing. As the EU's largest economy, Germany offers significant commercial opportunities.

Licence Requirements

Minimum Capital€20k–€125k
RegulatorBaFin
Typical Timeline6–12 months
Key DifferentiatorEU-wide passporting, largest EU economy

Detailed Requirements

PSD2 capital requirements. BaFin expects robust governance, comprehensive AML frameworks, and meaningful local substance. German-language documentation may be required.

Application Process

1

Regulatory Strategy

We assess your business model and regulatory position to develop a clear licensing strategy.

2

Business Plan

We prepare a comprehensive business plan meeting the regulator's expectations.

3

Programme of Operations

Detailed programme of operations covering governance, compliance, and operational arrangements.

4

Compliance Framework

Full AML/CFT framework, compliance monitoring programme, and risk management policies.

5

Application Submission

We compile and submit the complete application package to the regulator.

6

Regulator Review

We manage all regulator communications and information requests during the review period.

7

Authorisation

Upon approval, we support your transition to live operations.

Process Detail

6 to 12 months. BaFin is thorough and systematic in its approach.

Germany vs United Kingdom

CriteriaGermanyUnited Kingdom
Capital€20k–€125k£20k–£125k
Timeline6–12 months6–12 months
RegulatorBaFinFCA
Key FeatureEU-wide passporting, largest EU economyUK market access — no EEA passporting post-Brexit

Frequently Asked Questions

The capital requirement for a payment institution licence in Germany is €20k–€125k. PSD2 capital requirements. BaFin expects robust governance, comprehensive AML frameworks, and meaningful local substance. German-language documentation may be required.

The typical timeline for a payment institution licence in Germany is 6–12 months. 6 to 12 months. BaFin is thorough and systematic in its approach.

Germany provides access to Europe's largest consumer market and a mature financial services ecosystem. Frankfurt is a major European financial hub.

After receiving your payment institution licence in Germany, you must maintain ongoing compliance with regulatory requirements including safeguarding of customer funds, regular regulatory reporting, maintaining adequate capital, updating AML and compliance frameworks, and cooperating with supervisory reviews and inspections.

Most jurisdictions require local substance for a payment institution licence. In Germany, you will typically need a registered office, at least one locally resident director, and potentially additional operational staff. We can advise on the exact requirements and help you establish the minimum viable local presence.

Yes, a payment institution licence obtained in Germany provides EU-wide passporting rights across all EEA member states. This allows you to operate across 30 European countries from a single authorisation.