{"id":7455,"date":"2026-10-21T16:24:41","date_gmt":"2026-10-21T13:24:41","guid":{"rendered":"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/"},"modified":"2026-10-23T15:59:22","modified_gmt":"2026-10-23T12:59:22","slug":"payment-institution-emi-licence-eu-uk-canada","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/","title":{"rendered":"EMI and Payment Institution Licence in the EU, UK and Canada"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><symbol id=\"i-coin\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M14.5 9.5c-.5-1-1.5-1.5-2.5-1.5-1.4 0-2.5.8-2.5 2s1.1 1.6 2.5 2 2.5.8 2.5 2-1.1 2-2.5 2c-1 0-2-.5-2.5-1.5M12 6.5v11\"\/><\/symbol><symbol id=\"i-clock\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 7v5l3 2\"\/><\/symbol><symbol id=\"i-globe\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M3 12h18M12 3c2.5 2.7 3.8 5.7 3.8 9s-1.3 6.3-3.8 9c-2.5-2.7-3.8-5.7-3.8-9S9.5 5.7 12 3z\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">A payments business starts with choosing a regime. In the EU it is a PI or EMI licence, in the UK FCA (UK Financial Conduct Authority) authorisation, in Canada registration as a payment service provider with the Bank of Canada. We cover capital, timelines, safeguarding and what PSD3 changes. Minimum capital in the EU is EUR 20,000 to 125,000 for a PI and EUR 350,000 for an EMI. The UK has new safeguarding rules from 7 May 2026, and Canada has PSP (payment service provider) registration instead of a licence. Publication of PSD3 could not be confirmed.<\/p><p class=\"lbm-verified\">Checked on 21 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#types\">PI or EMI<\/a><\/li><li><a href=\"#capital\">Minimum capital<\/a><\/li><li><a href=\"#eu\">EU process<\/a><\/li><li><a href=\"#uk\">United Kingdom<\/a><\/li><li><a href=\"#ca\">Canada<\/a><\/li><li><a href=\"#safe\">Safeguarding<\/a><\/li><li><a href=\"#psd3\">PSD3 and PSR<\/a><\/li><li><a href=\"#compare\">Comparison<\/a><\/li><li><a href=\"#case\">Case analysis<\/a><\/li><li><a href=\"#choose\">Step by step<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"types\"><h2>PI vs EMI<\/h2><p style=\"max-width:70ch\">A payment institution (PI) provides payment services listed in Annex I to PSD2: transfers, acquiring, issuing payment instruments, money remittance, payment initiation, account information. An electronic money institution (EMI) also issues and redeems electronic money, meaning monetary value stored against funds received.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>You need a PI<\/h3><p>Accepting payments and transfers without holding a client balance.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>You need an EMI<\/h3><p>Wallets, client balances, cards with a balance.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>AIS or PIS only<\/h3><p>Separate permissions exist for services limited to account information or payment initiation. For PIS (payment initiation service) alone PSD2 sets minimum capital at EUR 50,000.<\/p><\/div><\/div><\/section><section id=\"capital\"><h2>Minimum capital for an EMI licence<\/h2><p style=\"max-width:70ch\">Minimum capital is the floor at authorisation. On top of it the regulator requires own funds calculated on transaction volumes.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>PI under Article 7 PSD2<\/h3><p>EUR 20,000: money remittance only. EUR 50,000: payment initiation only. EUR 125,000: any other payment services in points 1 to 5 of Annex I, including accounts, payment transactions, payment instruments and acquiring.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-globe\"\/><\/svg><\/span><h3>PI in the UK<\/h3><p>Schedule 3 to the PSRs 2017 sets the same amounts on the same logic: EUR 125,000, 50,000 and 20,000. For several services the highest amount applies.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>EMI<\/h3><p>At least EUR 350,000. This is stated in the Electronic Money Regulations 2011 (Schedule 2) and on the Bank of Lithuania page. In the UK EMI own funds are calculated under methods A to D; method D is 2% of average outstanding electronic money.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Budget exceeds the minimum<\/b><p>The regulator assesses the volumes and risks in your business plan, so the actual amount is usually above the minimum.<\/p><\/div><\/div><\/section><section id=\"eu\"><h2>EU: how licensing works<\/h2><p style=\"max-width:70ch\">The licence is granted by the national regulator of the home country. You can operate in other EU\/EEA states after a notification, with no separate licence. The process below follows the Bank of Lithuania.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>Timelines<\/h3><p>A formal completeness check takes 5 business days. A decision is made within 3 months of a complete and sufficiently detailed file. If documents are missing, the period runs from when they are supplied. The Bank usually sends questions and the process stretches.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>State fee<\/h3><p>EUR 1,463 for an EMI licence and EUR 898 for a PI licence.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>What the regulator assesses<\/h3><p>The reputation and financial soundness of holders of qualifying holdings, management qualifications, a realistic business plan, risk management and internal control, and protection of client funds. PIS and AIS (account information service) providers need professional indemnity insurance.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-info\"\/><\/svg><\/span><h3>Restricted-activity licence in Lithuania<\/h3><p>Valid only in Lithuania. For an EMI, average monthly outstanding e-money must not exceed EUR 900,000; for a PI, average monthly payment transactions must not exceed EUR 3 million. Other countries apply their own rules to such statuses.<\/p><\/div><\/div><div class=\"lbm-co info\"><span class=\"lbm-ico\"><svg><use href=\"#i-info\"\/><\/svg><\/span><div><b>Practical takeaway<\/b><p>In practice EU regulators expect real management to be located in the licensing country. This is our view, not a formal test from the regulators&#8217; pages.<\/p><\/div><\/div><\/section><section id=\"uk\"><h2>United Kingdom: the FCA<\/h2><p style=\"max-width:70ch\">The regime is set by the Payment Services Regulations 2017 (PSRs) and the Electronic Money Regulations 2011 (EMRs). An FCA authorisation covers the UK only.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Small PI<\/h3><p>Projected average monthly payment transactions of up to EUR 3 million over 12 months. Registration is optional.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Authorised PI<\/h3><p>Required if projected average monthly transactions exceed EUR 3 million.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Small EMI and Authorised EMI<\/h3><p>Small EMI: average outstanding e-money up to EUR 5 million, no AIS or PIS, and monthly payment transactions must not exceed EUR 3 million. Above EUR 5 million, EMI authorisation is required.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>Timelines<\/h3><p>A case officer is allocated within 20 working days. The FCA has announced targets for payments and e-money firms: 3 months for a complete application and 10 months for an incomplete one (down from 12). These are voluntary targets.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>What the FCA asks for<\/h3><p>A main contact inside the firm, tailored policies, evidence of managers&#8217; experience, financial forecasts with a balance sheet and two stress scenarios, and arrangements for capital, safeguarding, wind-down and insurance. An application without the correct fee is rejected without assessment.<\/p><\/div><\/div><\/section><section id=\"ca\"><h2>Canada: PSP registration with the Bank of Canada<\/h2><p style=\"max-width:70ch\">Canada has no separate PI and EMI licences. Payment service providers are regulated under the Retail Payment Activities Act (RPAA), supervised by the Bank of Canada. Registration opened on 1 November 2024, and the risk management and safeguarding requirements took effect on 8 September 2025. Since then you must be registered before starting activity.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-list\"\/><\/svg><\/span><h3>Five functions<\/h3><p>1) providing or maintaining an account for end users; 2) holding funds on behalf of an end user; 3) initiating an electronic funds transfer (EFT); 4) authorising an EFT or transmitting and receiving payment instructions for an EFT; 5) clearing or settlement. If you perform at least one as a service in its own right, and not as a function incidental to another product, you are a PSP.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-globe\"\/><\/svg><\/span><h3>Foreign PSPs<\/h3><p>A PSP without a place of business in Canada must also register if it serves end users physically in Canada and directs its activities at them. An agent in Canada is needed to receive notices. Banks, some provincially regulated institutions and certain activities are excluded.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>Fee and requirements<\/h3><p>A one-time non-refundable fee of CAD 2,500, then annual supervisory assessments. You need an operational risk and incident response framework, a funds safeguarding framework, and annual and other reports through PSP Connect. No minimum capital requirement appears in the Bank of Canada materials we checked, but verify the Act and regulations before launch.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>Timing and risk<\/h3><p>There is no fixed decision deadline: refusal notices generally come 30 to 45 days after the relevant trigger. The Minister of Finance has 60 days to decide whether to review an application for national security reasons, and a review can take 180 days. Operating without registration is a serious violation that can attract a substantial penalty. On 12 June 2026 the Bank announced it would publish notices of violation.<\/p><\/div><\/div><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Does not replace FINTRAC (Canada\u2019s financial intelligence unit)<\/b><p>PSP registration with the Bank of Canada does not replace MSB (money services business) registration with FINTRAC under anti-money laundering law. They are two separate regimes. More: <a href=\"\/en\/case-canada-msb-registration-crypto-payment-platform\/\">our case on Canadian MSB registration<\/a>.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"safe\"><h2>Safeguarding client funds<\/h2><p style=\"max-width:70ch\">All three jurisdictions require client funds to be kept apart from the firm&#8217;s own, but the details differ.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>EU<\/h3><p>Under Article 10 PSD2 funds are segregated from the firm&#8217;s own (in particular in a separate account with a credit institution or in low-risk liquid assets) or covered by insurance or a guarantee from a party outside the PI&#8217;s group. The agreed PSD3 text is expected to add rules, but until the texts are published treat them as guidance, not law.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>UK from 7 May 2026<\/h3><p>The Supplementary Regime (PS25\/12) applies: reconciliation at least once each reconciliation day, a monthly return to the FCA, an annual audit (exempt if you have not been required to safeguard more than GBP 100,000 at any time for at least 53 weeks), a resolution pack, and due diligence on third parties that hold or insure funds. It applies to authorised PIs (except those providing only PIS or AIS), EMIs and credit unions issuing e-money. A statutory trust and designated accounts are not part of it.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Canada<\/h3><p>Funds are held separately, by trust or insurance. The insurer must not be affiliated with the PSP, cover must be at least the safeguarded amount, and 30 days&#8217; notice of cancellation is required. Deposit insurance alone does not meet the requirement. The Bank of Canada may ask for a legal opinion that the trust is valid.<\/p><\/div><\/div><\/section><section id=\"psd3\"><h2>PSD3 and PSR: where things stand on 21 October 2026<\/h2><p style=\"max-width:70ch\">The Council and Parliament reached a provisional political agreement on 27 November 2025, and the final compromise texts were circulated in April 2026. Publication in the Official Journal could not be confirmed. What follows is what law firms report on the compromise text.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Merging the regimes<\/h3><p>PSD3 repeals EMD2: e-money authorisation moves into PSD3 and conduct rules into the PSR (proposed EU Payment Services Regulation), which applies directly.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>Transition<\/h3><p>PIs and EMIs authorised under PSD2 and EMD2 may keep operating for up to 27 months after PSD3 enters into force and are deemed authorised under PSD3 if they show compliance. The transposition period for PSD3 is 21 months.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Practical takeaway<\/b><p>It makes sense to apply under current rules, but documents and procedures will need to be brought into line with the new regime. Watch for publication in the Official Journal.<\/p><\/div><\/div><\/section><section id=\"compare\"><h2>Comparison: EU, UK and Canada<\/h2><p style=\"max-width:70ch\">Based on PSD2\/EMD2, the PSRs 2017\/EMRs 2011, the RPAA and regulator materials.<\/p><div class=\"lbm-cmp\"><table><thead><tr><th><\/th><th>EU (PSD2\/EMD2)<\/th><th>United Kingdom<\/th><th>Canada (RPAA)<\/th><\/tr><\/thead><tbody><tr><th scope=\"row\">Regulator<\/th><td>National regulator of the home country<\/td><td>FCA<\/td><td>Bank of Canada<\/td><\/tr><tr><th scope=\"row\">Form<\/th><td>Licence<\/td><td>Authorisation or registration<\/td><td>PSP registration<\/td><\/tr><tr><th scope=\"row\">Territory<\/th><td>EU\/EEA passport by notification<\/td><td>UK only<\/td><td>Canada, including foreign PSPs targeting Canada<\/td><\/tr><tr><th scope=\"row\">PI capital<\/th><td>EUR 20,000 \/ 50,000 \/ 125,000<\/td><td>Same levels<\/td><td>Not found in the materials checked<\/td><\/tr><tr><th scope=\"row\">EMI capital<\/th><td>EUR 350,000<\/td><td>EUR 350,000<\/td><td>No separate EMI status<\/td><\/tr><tr><th scope=\"row\">Simplified status<\/th><td>Set by the state, e.g. restricted licence in Lithuania<\/td><td>Small PI up to EUR 3m a month, small EMI up to EUR 5m<\/td><td>Single registration<\/td><\/tr><tr><th scope=\"row\">Timing<\/th><td>Lithuania: 3 months from a complete file<\/td><td>FCA targets: 3 months (complete), 10 months (incomplete)<\/td><td>No fixed deadline; national security review up to 180 days<\/td><\/tr><tr><th scope=\"row\">Fee<\/th><td>Lithuania: EUR 898 (PI), EUR 1,463 (EMI)<\/td><td>Depends on firm category<\/td><td>CAD 2,500 plus annual assessments<\/td><\/tr><tr><th scope=\"row\">Safeguarding<\/th><td>Article 10 PSD2<\/td><td>Supplementary Regime from 7 May 2026<\/td><td>Segregation, trust or insurance, from 8 September 2025<\/td><\/tr><\/tbody><\/table><\/div><\/section><section id=\"case\"><h2>Case analysis<\/h2><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Hypothetical example, not a real case<\/b><p>A startup plans a payment product for customers in the EU and the UK and is unsure whether it needs a licence or whether a partnership with a licensed provider is enough. A sensible order of action is to describe who holds customer funds and who issues e-money, map this to the licence types, assess capital and timelines, and then compare getting its own licence with a partner model.<\/p><\/div><\/div><\/section><section id=\"choose\"><h2>Step by step<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><div><h3>Choose a model and jurisdiction<\/h3><p>PI, EMI, a simplified status or PSP registration. Consider clients, banks and permitted volumes.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><div><h3>Assemble the team<\/h3><p>A director, an AML (anti-money laundering) officer, a risk officer, and proven payments experience.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><div><h3>Prepare the business plan<\/h3><p>Volume forecasts, a financial model, stress scenarios, a wind-down plan.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-pen\"\/><\/svg><\/span><div><h3>Write the policies<\/h3><p>AML, security, risk management, outsourcing, complaints, safeguarding. Templates will not do: regulators ask for tailored documents.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><div><h3>Secure capital and a client funds account<\/h3><p>Find the safeguarding bank early, otherwise the process stalls.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><div><h3>File a complete package<\/h3><p>The period usually runs from receipt of all documents, so gaps extend the process. Answer queries fast.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-list\"\/><\/svg><\/span><div><h3>Build reporting<\/h3><p>After authorisation you need regular reports, and monitoring of capital and safeguarding.<\/p><\/div><\/li><\/ol><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Common mistakes<\/b><p>Filing an incomplete package. Using generic policy templates. Choosing a licence without a banking plan (see our article on <a href=\"\/en\/how-banks-block-fintech-startup-accounts\/\">banks blocking fintech startup accounts<\/a>). Treating minimum capital as the budget. Assuming an FCA authorisation works in the EU. Ignoring the new UK safeguarding rules. Assuming FINTRAC MSB registration is enough for Canada. Serving Canadian customers from abroad without RPAA registration.<\/p><\/div><\/div><\/section><figure class=\"lbm-pull\"><q>Minimum capital is not the licence budget; it is the floor.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>FAQ<\/h2><div class=\"lbm-faq\"><details><summary>How much does a PI or EMI licence cost?<\/summary><p>Minimum capital is EUR 20,000 to 125,000 for a PI and EUR 350,000 for an EMI. State fees, in Lithuania for example, are EUR 898 and EUR 1,463. The real budget includes lawyers, staff, IT and AML.<\/p><\/details><details><summary>How long does it take?<\/summary><p>The Bank of Lithuania states a 3-month decision period from a complete file. In practice it usually takes longer because of regulator queries.<\/p><\/details><details><summary>Can I operate in the EU with a UK authorisation?<\/summary><p>No. An FCA authorisation covers the UK only; for the EU you need a licence in an EU country.<\/p><\/details><details><summary>What is the difference between a PI and an EMI?<\/summary><p>An EMI can issue electronic money, i.e. hold a client balance. A PI provides payment services without issuing electronic money.<\/p><\/details><details><summary>Do I need a licence in Canada?<\/summary><p>Not a licence but registration with the Bank of Canada under the RPAA, if you perform at least one of the five payment functions as a service in its own right. MSB registration with FINTRAC may also be needed.<\/p><\/details><details><summary>What changes with PSD3?<\/summary><p>PSD3 and the PSR are meant to merge the PI and EMI regimes. According to the text as law firms describe it, existing licences will carry over on confirmation of compliance. Check the Official Journal for publication.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/how-banks-block-fintech-startup-accounts\/\">How banks block fintech startup accounts<\/a>; <a href=\"\/en\/transaction-laundering-and-miscoding\/\">Transaction laundering and miscoding<\/a>; <a href=\"\/en\/case-canada-msb-registration-crypto-payment-platform\/\">Canadian MSB registration<\/a>; <a href=\"\/en\/kyc-kyb-payment-providers\/\">KYC and KYB for Payment Providers<\/a>; <a href=\"\/en\/payfac-sub-merchant-liability\/\">Payment Facilitators, Aggregators and ISOs: Who Is Responsible for Sub-Merchants<\/a>; <a href=\"\/en\/accepting-crypto-payments-business\/\">Accepting crypto payments in business<\/a>. Services: <a href=\"\/en\/regulatory-and-compliance\/\">regulatory and compliance<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/dir\/2015\/2366\/oj\/eng\" rel=\"nofollow noopener\" target=\"_blank\">Directive (EU) 2015\/2366 (PSD2), Articles 7 and 10<\/a><\/li><li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/dir\/2009\/110\/oj\/eng\" rel=\"nofollow noopener\" target=\"_blank\">Directive 2009\/110\/EC (EMD2)<\/a><\/li><li><a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2017\/752\/schedule\/3\" rel=\"nofollow noopener\" target=\"_blank\">The Payment Services Regulations 2017 (SI 2017\/752), Schedule 3<\/a><\/li><li><a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2011\/99\/schedule\/2\" rel=\"nofollow noopener\" target=\"_blank\">The Electronic Money Regulations 2011 (SI 2011\/99), Schedule 2<\/a><\/li><li><a href=\"https:\/\/www.fca.org.uk\/firms\/apply-emoney-payment-institution\" rel=\"nofollow noopener\" target=\"_blank\">FCA: Apply to become an electronic money or a payment institution<\/a><\/li><li><a href=\"https:\/\/www.fca.org.uk\/news\/news-stories\/fca-sets-faster-targets-authorisations\" rel=\"nofollow noopener\" target=\"_blank\">FCA: FCA sets faster targets for authorisations<\/a><\/li><li><a href=\"https:\/\/www.fca.org.uk\/publications\/policy-statements\/ps25-12-changes-safeguarding-regime-payments-and-e-money-firms\" rel=\"nofollow noopener\" target=\"_blank\">FCA: PS25\/12, Changes to the safeguarding regime for payments and e-money firms<\/a><\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/regulatory-oversight\/retail-payments\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Canada: Retail payments<\/a><\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/regulatory-oversight\/retail-payments\/retail-payments-supervision-key-milestones\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Canada: Retail payments supervision, key milestones<\/a><\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/2026\/01\/frequently-asked-questions-about-retail-payments-supervision\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Canada: Frequently asked questions about retail payments supervision (January 2026)<\/a><\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/2024\/10\/criteria-for-registering-payment-service-providers\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Canada: Criteria for registering payment service providers<\/a><\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/2023\/11\/moving-money-with-confidence-canadas-new-regime-retail-payments-supervision\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Canada: Moving money with confidence (November 2023)<\/a><\/li><li><a href=\"https:\/\/www.lb.lt\/en\/authorisation-of-electronic-money-institutions\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Lithuania: Authorisation of Electronic Money Institutions<\/a><\/li><li><a href=\"https:\/\/www.lb.lt\/en\/authorisation-of-payment-institutions\" rel=\"nofollow noopener\" target=\"_blank\">Bank of Lithuania: Authorisation of Payment Institutions<\/a><\/li><li><a href=\"https:\/\/www.europarl.europa.eu\/legislative-train\/theme-an-economy-that-works-for-people\/file-revision-of-eu-rules-on-payment-services\" rel=\"nofollow noopener\" target=\"_blank\">European Parliament: Revision of EU rules on payment services (PSD3 and PSR)<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help payment companies:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/regulatory-and-compliance\/\">Regulatory and compliance<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/corporate-law\/\">Company structure<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"EMI and Payment Institution Licence in the EU, UK and Canada\", \"description\": \"How to get a payment institution (PI) or EMI licence in the EU, FCA authorisation in the UK and PSP registration with the Bank of Canada: capital, timelines, safeguarding, PSD3.\", \"url\": \"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/\", \"mainEntityOfPage\": \"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/\", \"image\": \"https:\/\/legalbit.top\/wp-content\/uploads\/2026\/10\/psp_emi-scaled.webp\", \"datePublished\": \"2026-10-21T09:30:00Z\", \"dateModified\": \"2026-10-21T09:30:00Z\", \"inLanguage\": \"en\", \"author\": {\"@type\": \"Organization\", \"name\": \"LegalBit\", \"url\": \"https:\/\/legalbit.top\/\"}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"LegalBit\", \"url\": \"https:\/\/legalbit.top\/\"}}<\/script>\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"How much does a PI or EMI licence cost?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Minimum capital is EUR 20,000 to 125,000 for a PI and EUR 350,000 for an EMI. State fees, in Lithuania for example, are EUR 898 and EUR 1,463. The real budget includes lawyers, staff, IT and AML.\"}}, {\"@type\": \"Question\", \"name\": \"How long does it take?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The Bank of Lithuania states a 3-month decision period from a complete file. In practice it usually takes longer because of regulator queries.\"}}, {\"@type\": \"Question\", \"name\": \"Can I operate in the EU with a UK authorisation?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"No. An FCA authorisation covers the UK only; for the EU you need a licence in an EU country.\"}}, {\"@type\": \"Question\", \"name\": \"What is the difference between a PI and an EMI?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"An EMI can issue electronic money, i.e. hold a client balance. A PI provides payment services without issuing electronic money.\"}}, {\"@type\": \"Question\", \"name\": \"Do I need a licence in Canada?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Not a licence but registration with the Bank of Canada under the RPAA, if you perform at least one of the five payment functions as a service in its own right. MSB registration with FINTRAC may also be needed.\"}}, {\"@type\": \"Question\", \"name\": \"What changes with PSD3?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"PSD3 and the PSR are meant to merge the PI and EMI regimes. According to the text as law firms describe it, existing licences will carry over on confirmation of compliance. Check the Official Journal for publication.\"}}]}<\/script>\n","protected":false},"excerpt":{"rendered":"<p>A payments business starts with choosing a regime. In the EU it is a PI or EMI licence, in the UK FCA (UK Financial Conduct Authority) authorisation, in Canada registration as a payment service provider with the Bank of Canada. We cover capital, timelines, safeguarding and what PSD3 changes. Minimum capital in the EU is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7454,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[115,112,120,108,117,139],"post_folder":[],"class_list":["post-7455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-compliance","tag-eu","tag-fintech","tag-licensing","tag-payments","tag-uk"],"_links":{"self":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/comments?post=7455"}],"version-history":[{"count":28,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7455\/revisions"}],"predecessor-version":[{"id":8138,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7455\/revisions\/8138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media\/7454"}],"wp:attachment":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media?parent=7455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/categories?post=7455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/tags?post=7455"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/post_folder?post=7455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}