EMI license

Consumer borrowing on credit cards jumped to its highest level in more than a year in November, pushing all forms of household unsecured credit to £1.2bn, according to the latest Bank of England data.

The banking system has disappointed many of us, so people are looking for alternative ways to store their assets and make transactions.

Quite often, e-money comes to the rescue. To open such a business, you should get an EMI license. This allows you to work entirely legally and attract new investors.

What organizations can provide such services?

These organizations can issue e-money, store it or perform various actions with it on behalf of their customers. Such organizations include e-wallets or exchanges.

Availability of financial services

They make financial services more accessible and efficient to many commercial and private clients.

They also provide services similar to banks. They may offer bank accounts, and as they are licensed organizations, they are subject to applicable laws governing minimum initial capital.

Where do e-money organizations operate?

EMIs are a relatively recent addition to the world of global finance and entered the EU financial market in 2009 after the EU Parliament passed a Directive.

Since then, many EMIs have been created in particularly far-sighted financial jurisdictions such as the UK, Lithuania, Malta, and Ireland.

Cross-border transactions facilitated

They can offer domestic and international payment services, making it easier for businesses to operate overseas than traditional banks typically allow.

What is their fundamental difference from banks?

Although they have similarities, EMIs and banks differ significantly in the range of financial services they offer.

They provide electronic money payment accounts that allow customers to accept and make payments without opening a bank account. Using electronic money technology, EMIs facilitate credit transfers, direct debits, and foreign exchange services.

In Europe, EMIs are expected to meet the minimum seed capital requirement of €350,000. It allows EMI to enter the market more actively than the previous restrictive regime, which required an initial capital of 1,000,000 euros.

EMIs also provide support services with loan-related tasks and opportunities. The issuance of electronic money remains essential, and there must be reliable control of customer funds and accurate financial forecasts. EMI’s funds are held separately from customer funds.

But are these differences significant?

In contrast, banks usually offer a more comprehensive range of financial services beyond payment services. Such activities may include lending and investment services.

However, at an organizational level, most EMIs are smaller than traditional banks and are often more flexible and technologically savvy. It makes it easier for them to develop specific product features that many banks don’t offer.

Electronic money institutions should also offer comprehensive advice and the ability to issue e-money and conduct related payment transactions.

Length of time for opening accounts

For example, while opening a corporate bank account with a traditional bank can take months, including travel to a physical branch, opening a business account with an EMI can take a couple of weeks or even a few days.

In addition, some EMIs, such as FinXP, are more business-friendly, mainly when serving corporate clients who regularly suffer economic discrimination from more established financial institutions.

Our services

If you want to open an EMI business, you should contact our organization’s specialists. They specialize in helping to obtain a license in different countries. They are well aware of the specifics of the work of such organizations, so they will tell you what you need to pay attention to to meet all the requirements of state bodies. Also, our experts will help to prepare the necessary documents.

Our specialists are attentive to the wishes of their customers, which makes cooperation as pleasant as possible.

In the end

If you are unhappy with how the banking system works, you can open an organization that will help users complete transactions or store their assets. But for this, you definitely need to get a work permit. The specialists of our company will help you to do this in the shortest possible time and will not charge too much for their services.