When comparing the licenses of a Payment Institution (PI) and an Electronic Money Institution (EMI), it’s important to understand the regulatory frameworks and specific operational permissions associated with each. The following table provides a detailed comparison:
|Payment Institution License
|Electronic Money Institution License
|Authorized to provide payment services like money transfers, direct debits, and card payments.
|Authorized to issue and manage electronic money, in addition to providing payment services.
|Typically regulated under Payment Services Directives (PSD/PSD2 in the European Union).
|Regulated under Electronic Money Directives (EMD) in the European Union.
|Generally lower initial capital requirements compared to EMIs.
|Higher initial capital requirements to ensure the stability and security of the electronic money issued.
|Scope of Services
|Limited to facilitating payment transactions without issuing electronic money.
|Can issue electronic money, which can be used for storage, transfer, or payment purposes, in addition to standard payment services.
|Requirements focus on the security and efficiency of payment transactions.
|Additional requirements for safeguarding and redeeming electronic money, ensuring consumer protection.
|Compliance and Oversight
|Must adhere to AML (Anti-Money Laundering), KYC (Know Your Customer), and other financial regulations.
|Along with AML and KYC, must comply with regulations specific to the issuance and management of electronic money.
|Less complex in terms of regulatory compliance compared to EMIs.
|More complex, given the additional layer of issuing and managing electronic money.
|Access to payment service markets without the ability to create electronic money.
|Access to both payment service markets and electronic money markets, offering a broader scope of financial services.
|Generally a simpler and quicker process than EMI licensing.
|More stringent and comprehensive, involving closer scrutiny of business models, risk management, and operational readiness.