PAYMENT INSTITUTE
As a licensed payment institute (PI), you can carry out the following activities on behalf of your customers
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transfer money to others worldwide
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Pay into or withdraw cash from a payment account e.g. through an ATM or over the counter
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payments transaction using mobile handsets
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transfer money from one user account to another
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Setting up direct debits and processing standing orders, BACS or CHAPS payments
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making direct debits, card payments or credit transfers using overdraft facilities
Examples of businesses operating under the PI licenses
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Money transfer / remittence operators
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Merchant acquirers
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Prepaid card issuers
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Mobile network operators offering payment services
Apply to become a small payment institution (SPI)
If your business's average monthly turnover in payment transactions will be less than €3m and there are no plans to passport the payment services across EEA, you could then apply to register as a small payment institution (SPI).
Please note that businesses registered as SPIs are not permitted to provide AIS or PIS under PSD2.
Apply to become a authorised payment institution (API)
If your business's average monthly turnover in payment transactions will be greater than €3m and you would like to passport the payment services across EEA, you could then apply to be authorised as a authorised payment institution (API).
Passporting would allow your selected partners and agents across the EEA to carry out the same authorised financial services, which your firm has been authorised to do so under your license.
Application requirements
In order to either register as an SPI or become authorised as an API, as part of the application process, applicants needs to submit number of documents. This is to demonstrate to the regulator that the applicant together with its directors, key managers and those controlling it by virtue of their ownership or voting rights are of repute and capable of running a payment services business.
Please see below a comparison table that summarises the key differences between the application requirements of SPI and API.
Next steps
Regardless whether you are applying as a small payment institute (SMI) or as authorised payment institute (API), our services include helping you with the application form, identifying what supporting documents are needed with your application and if required, helping you draft those supporting documents.
Take advantage of our ‘free no obligation’ initial assessment offer, which include assessing the suitability of your directors, shareholders, business model and ability to meet FCA’s requirements.