PSP and E-Money License in Estonia

An e-money institution is a joint-stock company or limited partnership whose permanent activity is issuing e-money in its own name.

A payment institution is a business whose permanent activity is the provision of payment services.

In order to operate as a payment institution or an e-money institution, the company must have a corresponding license issued by the Financial Supervision Authority of Estonia.

General information - Payment Service Provider (PSP) 

PSP license allows you to provide following services:

  • services which enable to make cash payments to payment accounts and all acts required for the holding of payment accounts;
  • services which enable to withdraw cash from payment accounts and make all acts required for the holding of payment accounts;
  • execution of payment transactions, including transfer of funds to a payment account opened with a payment service provider;
  • execution of payment transactions if the funds have been granted as a loan to the client of the payment institution;
  • issue of payment instruments specified in law;
  • acceptance of payment transactions;
  • money remittance;
  • payment initiation service;
  • account information service.

License allows you to work in all EEA countries.

Holders of a Estonian license are allowed to provide payment services in the European Economic Area (EEA) without having to obtain an additional license in another EEA state (passporting).

KEY TAKEAWAYS OF PASSPORTING

-       Passporting allows a firm registered in the European Economic Area (EEA) to do business in any other EEA state without the need for further authorization from that country.

-       Passporting eliminates regulatory barriers to free trade between EEA member states, making trade between these states as easy as—and, in some ways.

E-Money Institution - General information

An e-money institution may, in addition to the issue of e-money, be engaged in the following:

  • provision of payment services;
  • grant of loans related to the provision of payment services (upon meeting some obligatory conditions);
  • provision of ancillary services closely related to the issue or administration of e-money or payment services;
  • operation of payment systems.

License allows you to work in all EEA countries.

Holders of a Estonian license are allowed to provide e-money services in the European Economic Area (EEA) without having to obtain an additional license in another EEA state (passporting).

KEY TAKEAWAYS OF PASSPORTING

-       Passporting allows a firm registered in the European Economic Area (EEA) to do business in any other EEA state without the need for further authorization from that country.

-       Passporting eliminates regulatory barriers to free trade between EEA member states, making trade between these states as easy as—and, in some ways.



General requirements for License

When applying for PSP or e-Money license Company should have at least following:

  1. A business plan
  2. Risk managment policy and bookkeeping policy
  3. Description of the internal control and protection rules and systems
  4. Data on the information technology and other technological equipment and systems, security systems, and control mechanisms and systems that will be needed for provision of the planned services
  5. Description of the operating risks
  6. General requirements for maintenance and protection of assets of client and Description of the prudential safeguards
  7. Business continuity plan
  8. Conflict of interest policy
  9. Outsourcing and transferring policy
  10. Procedure for handling client complaints
  11. AML and TF rules
  12. Sanctions policy

Service Fees

Price for applying for a PSP or E-Money license starts from 15 000 EUR.