Payment Institution Licence in Lithuania

A payment service provider (PSP) is a business that provides payment services to facilitate the transfer of funds between individuals or businesses. Whether transferring money between bank accounts, paying for goods and services, or managing online transactions, PSPs make financial services possible. To carry out such activities, companies must obtain a payment institution (PI) license to prove that the company has met the regulatory requirements set by the regulatory body, the Central Bank of Lithuania.

Comparison of payment institutions and electronic money institutions.

The Payment Institution License in Lithuania authorizes companies to provide various financial services that are important for both businesses and individuals. Before deciding to obtain a payment institution license, it is necessary to understand whether a payment institution (PI) license is sufficient or whether it is necessary to obtain an electronic money institution (EMI) license. To clarify the difference between the two, here is a brief comparison:

A payment institution (PI) is a legal entity that provides payment services but does not allow the use of electronic money. PI can provide the following main services:

■ Deposits and withdrawals of cash from payment accounts and related operations;

    ■ Payment account management;

    ■ payment transfers and credit transfers;

    ■ issuing and managing debit cards;

    ■ The Standing Committee;

    ■ Electronic payments (e. g. using mobile phones or other smart devices)

    ■ Payment for Initiation Services;

    ■ Account information services.

An electronic money institution (EMI) is a legal entity that both provides payment services and allows the use of electronic money. Electronic money institutions can provide all the typical services of payment institutions, but can also:

    ■ issuing and managing electronic money;

    ■ Provide e-wallet services that can store and manage electronic money;

    ■ currency exchange;

    ■ Payments can be made using electronic money.

The main difference between payment institutions and electronic money institutions is that electronic money institutions have the right to issue and manage electronic money, while payment institutions have no right. Electronic money is a virtual means of payment that can be paid online or in other electronic spaces and can be converted into real money at a set exchange rate.

Both institutions are regulated by the Bank of Lithuania and must comply with the laws and regulations of the European Union (EU), including the Payment Services Directive (PSD2) and the Electronic Money Institutions Directive (EMD).

If your business model means operating e-money, we recommend that you understand the process for obtaining an e-money license.

Requirements for obtaining a payment institution license

If you are considering becoming a PSP in Lithuania, you must meet several requirements to obtain a license.

    ■ Key Positions

Our team of experts can cover key positions such as Money Laundering Reporting Officer, Cybersecurity Specialist and Compliance Officer to help you meet regulatory requirements.

    ■  File

In terms of documentation, we will prepare the following information when submitting the application:

Application for personal investment;

Initial Capital Payment Statement;

A copy of the Lithuanian office lease contract;

Business plan; internal policies such as AML/CFT policy, risk management policy, information security policy, etc. (we will prepare all necessary policies and documents for you).

    ■ Initial Capital Requirements

The initial capital required may vary depending on the scope of services provided by the licensee:

If the scope of business is limited to the provision of transfer services, the share capital shall not be less than 20,000 euros;

If the company intends to provide payment start-up services only, the share capital shall not be less than 50,000 euros.

If the company only intends to provide payment start-up services, the share capital must be not less than 50,000 euros;

If the company intends to provide payment start-up services only, the share capital must be not less than 50,000 euros.

For the provision of other services, the share capital shall not be less than 125,000 euros.

    ■ Meeting with the Bank of Lithuania

We can assist you in organizing a meeting with the Bank of Lithuania and provide comprehensive legal support throughout the process. Our team will coordinate with you and attend the meeting to ensure that all necessary documents and procedures are met. We will also provide guidance on regulatory requirements and help you prepare for the conference. With our support, you can complete the process with confidence and increase your chances of success.

As part of our legal advice and project analysis services, we provide comprehensive support from the initial consultation to the licensing process. We assist with all the necessary policy and project implementation to help you obtain a payment institution license in Lithuania that complies with regulatory requirements. Our team of experts will guide you throughout the process to ensure your success.

Procedure for obtaining a payment institution license

If you decide to get a PI license in Lithuania, it is important to understand the basic stages of the licensing process. Here is a brief process review:

    ① Submission of application

First, we need to prepare an application form and submit it to the regulator-Bank of Lithuania to obtain a PI license. The regulator will assess whether to accept the application for review within 5 working days.

    ② Application evaluation

If everything is in order, the regulator will evaluate your application and the attached documents. If your application is not defective, the license will be issued within a maximum period of 3 months. If additional information or documentation is required, the review period will be extended.

    ③ Issue or refuse to issue a license

After evaluating your application and all supporting documents, the Board of Directors of the Bank of Lithuania will review the relevant information and decide whether to issue a license.

Steps to obtain a payment institution license

We provide comprehensive assistance to those seeking to obtain a private detective license, making the process easier and more convenient. Our team provides comprehensive support and guidance throughout the process, ensuring that all necessary requirements are met and the desired results are achieved.

Step 1: Strategy Development and License Preparation

We offer at a price of 3 000 euros:

24-hour business consultation.

For the price of 5 000 euros, we offer:

48 hours of business consultation.

Comprehensive analysis of your business model;

Risk assessment of partner countries, customers and financial flows; Lithuanian regulatory compliance assessment; review all necessary documents, including policies and licensing requirements; customized step-by-step plans and strategies for obtaining licenses; obtain all the information needed to start the project, And confidently show your business model to the Bank of Lithuania.

Step 2: Pre-licensing-€ 15 000

In this step, we will assist you in setting up your company in Lithuania and preparing everything for the licensing process. We will assist you

Organization of meetings with the Bank of Lithuania;

registered company;

Opening a company account; initial capital registration; preparation of a business plan; decision on IT solutions, specialists, rental of offices;

Hire experts.

Hiring experts.

Step 3: License -20 000 EUR

In this step, we will manage all your documentation requirements and submit the application and all necessary information on your behalf for review by the regulatory authorities. If the regulator raises any questions, we will provide legal assistance until the license is successfully obtained.