{"id":9986,"date":"2026-11-13T20:23:49","date_gmt":"2026-11-13T17:23:49","guid":{"rendered":"https:\/\/legalbit.top\/en\/?p=9986"},"modified":"2026-11-13T21:00:20","modified_gmt":"2026-11-13T18:00:20","slug":"payment-aggregator-licence","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/payment-aggregator-licence\/","title":{"rendered":"Payment Aggregators: Do They Need a Licence?"},"content":{"rendered":"\n<!-- Lucide Icons, ISC License. Copyright (c) 2026 Lucide Icons and Contributors. Permission to use, copy, modify, and\/or distribute this software for any purpose with or without fee is hereby granted, provided that the above copyright notice and this permission notice appear in all copies. THE SOFTWARE IS PROVIDED \"AS IS\" AND THE AUTHOR DISCLAIMS ALL WARRANTIES WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE. --><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 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stroke-linejoin=\"round\"><path d=\"m18 16 4-4-4-4\" \/>\n  <path d=\"m6 8-4 4 4 4\" \/>\n  <path d=\"m14.5 4-5 16\" \/><\/symbol><symbol id=\"payment-badge-check\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M3.85 8.62a4 4 0 0 1 4.78-4.77 4 4 0 0 1 6.74 0 4 4 0 0 1 4.78 4.78 4 4 0 0 1 0 6.74 4 4 0 0 1-4.77 4.78 4 4 0 0 1-6.75 0 4 4 0 0 1-4.78-4.77 4 4 0 0 1 0-6.76Z\" \/>\n  <path d=\"m16 9-5.5 5.5L8 12\" \/><\/symbol><symbol id=\"payment-workflow\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><rect width=\"8\" height=\"8\" x=\"3\" y=\"3\" rx=\"2\" \/>\n  <path d=\"M7 11v4a2 2 0 0 0 2 2h4\" \/>\n  <rect width=\"8\" height=\"8\" x=\"13\" y=\"13\" rx=\"2\" \/><\/symbol><symbol id=\"payment-credit-card\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" 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8.795a1 1 0 01-1.214 0C9.87 15.429 6 11.613 6 8a6 6 0 0112 0\" \/>\n  <path d=\"M4.474 15h-.197a1 1 0 00-.969.753l-1.097 4.35a1.5 1.5 0 001.444 1.898L20.344 22a1.5 1.5 0 001.446-1.897l-1.098-4.35a1 1 0 00-.969-.753h-.197\" \/>\n  <circle cx=\"12\" cy=\"8\" r=\"2\" \/><\/symbol><symbol id=\"payment-shield-check\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M20 13c0 5-3.5 7.5-7.66 8.95a1 1 0 0 1-.67-.01C7.5 20.5 4 18 4 13V6a1 1 0 0 1 1-1c2 0 4.5-1.2 6.24-2.72a1.17 1.17 0 0 1 1.52 0C14.51 3.81 17 5 19 5a1 1 0 0 1 1 1z\" \/>\n  <path d=\"m9 12 2 2 4-4\" \/><\/symbol><symbol id=\"payment-files\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M15 2h-4a2 2 0 0 0-2 2v11a2 2 0 0 0 2 2h8a2 2 0 0 0 2-2V8\" \/>\n  <path d=\"M16.706 2.706A2.4 2.4 0 0 0 15 2v5a1 1 0 0 0 1 1h5a2.4 2.4 0 0 0-.706-1.706z\" \/>\n  <path d=\"M5 7a2 2 0 0 0-2 2v11a2 2 0 0 0 2 2h8a2 2 0 0 0 1.732-1\" \/><\/symbol><\/svg><div class=\"lbm\"><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\" style=\"font-family:Inter,system-ui,-apple-system,'Segoe UI',sans-serif!important;font-size:16.5px!important;font-weight:400!important;line-height:1.7!important;text-align:left!important;letter-spacing:normal!important;word-spacing:normal!important;hyphens:none!important\">Payment aggregators connect merchants to acquiring banks and payment service providers through a common integration. They can simplify onboarding, payment processing and settlement. Whether they need a licence depends on the services they actually provide.<\/p><p>This article explains the main distinctions in the EU, UK and US and the contractual and compliance issues to assess before launch.<\/p><p class=\"lbm-verified\">Regulatory information reviewed as of 14 November 2026.<\/p><ul class=\"lbm-toc\"><li><a href=\"#section-1\">Aggregator, gateway or PayFac?<\/a><\/li><li><a href=\"#section-2\">Which activities trigger licensing?<\/a><\/li><li><a href=\"#jurisdictions\">EU, UK and US compared<\/a><\/li><li><a href=\"#section-6\">Can a licensed partner replace your own licence?<\/a><\/li><li><a href=\"#section-7\">Compliance, funds and merchant contracts<\/a><\/li><li><a href=\"#section-8\">What to check before launch<\/a><\/li><li><a href=\"#faq\">Frequently asked questions<\/a><\/li><li><a href=\"#conclusion\">Conclusion<\/a><\/li><\/ul><\/div><\/section><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-info\"\/><\/svg><\/span><div><p style=\"font-weight:400\"><strong>A provider can perform regulated acquiring even without holding customer funds.<\/strong> Calling a business a gateway or working with a licensed bank does not, by itself, resolve the licensing question.<\/p><\/div><\/div><section id=\"section-1\"><h2>Aggregator, gateway or PayFac?<\/h2><p>These commercial labels describe different models, but regulators look at functions and responsibilities.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-cable\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Payment gateway<\/h3><p>A gateway supplies technical infrastructure: payment APIs, encryption, authentication, routing and transaction data processing. Where merchants contract with a licensed acquirer that processes payments and settles directly with them, the gateway may remain outside the payment licensing perimeter.<\/p>\n<p>That conclusion requires the gateway to provide only technical support rather than independently perform regulated payment services.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-network\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Payment facilitator (PayFac)<\/h3><p>A PayFac typically works with an acquirer to enable sub-merchants to accept payments. It may onboard merchants, manage processing relationships, monitor transactions and participate in settlement.<\/p>\n<p>Depending on its merchant contracts and responsibilities, the PayFac may itself provide regulated acquiring. The acquiring bank\u2019s licence does not automatically cover an independent facilitator.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#payment-combine\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Payment aggregator<\/h3><p>\u201cAggregator\u201d is a broader term that may describe a PayFac, payment intermediary or technical platform connecting merchants to several PSPs. Its legal classification follows its actual role.<\/p><\/div><\/div><\/section><section id=\"section-2\"><h2>Which activities trigger licensing?<\/h2><p>There is no single \u201cpayment aggregator licence\u201d shared by all jurisdictions. A business may instead need payment institution, electronic money institution or money transmitter status.<\/p>\n<p>The main questions are:<\/p>\n<div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-route\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Who receives and transfers funds?<\/h3><p>Collecting customer payments and distributing them to merchants may constitute acquiring, money remittance or another regulated service.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-files\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Who contracts to provide payment acceptance?<\/h3><p>An aggregator that undertakes to accept and process merchant payments may provide acquiring even when a bank handles settlement.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-credit-card\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Who maintains accounts or stored value?<\/h3><p>Payment accounts and balances can create additional obligations. Issuing e-money requires a separate assessment.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-workflow\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Who initiates or executes payments?<\/h3><p>These functions may be regulated independently of custody.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#payment-code-xml\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Is the role genuinely technical?<\/h3><p>Software and data processing may fall outside regulation only where the provider does not independently perform regulated services.<\/p><\/div><\/div>\n<div class=\"lbm-co info\"><span class=\"lbm-ico\"><svg><use href=\"#i-info\"\/><\/svg><\/span><div><p>A settlement ledger does not automatically constitute e-money. Equally, avoiding possession of funds does not automatically remove licensing requirements. Payment flows and contracts must be assessed together.<\/p><\/div><\/div><\/section><section id=\"jurisdictions\"><h2>EU, UK and US: licensing compared<\/h2><div class=\"lbm-cmp\" style=\"overflow-x:auto\"><table style=\"min-width:640px;width:100%;table-layout:fixed\"><thead><tr><th scope=\"col\" style=\"white-space:normal!important;overflow-wrap:break-word\">Jurisdiction<\/th><th scope=\"col\" style=\"white-space:normal!important;overflow-wrap:break-word\">Main framework<\/th><th scope=\"col\" style=\"white-space:normal!important;overflow-wrap:break-word\">When authorisation may be needed<\/th><th scope=\"col\" style=\"white-space:normal!important;overflow-wrap:break-word\">Exclusions and alternatives<\/th><\/tr><\/thead><tbody><tr><th scope=\"row\" style=\"white-space:normal!important;overflow-wrap:break-word\">European Union<\/th><td>PSD2 and national implementing law.<\/td><td>Acquiring, remittance and other regulated payment services. E-money issuance needs a separate assessment.<\/td><td>Technical service exclusion; narrow commercial agent exclusion; registered agency where permitted.<\/td><\/tr><tr><th scope=\"row\" style=\"white-space:normal!important;overflow-wrap:break-word\">United Kingdom<\/th><td>Payment Services Regulations 2017; FCA supervision.<\/td><td>PayFac acquiring can be regulated even without holding funds or being the card scheme acquirer of record.<\/td><td>Genuinely technical services may fall outside regulation. SPI registration is available only where statutory conditions are met.<\/td><\/tr><tr><th scope=\"row\" style=\"white-space:normal!important;overflow-wrap:break-word\">United States<\/th><td>Federal BSA \/ FinCEN rules and state money transmission laws.<\/td><td>Receiving and transmitting funds may trigger federal MSB requirements and state licensing.<\/td><td>The federal payment processor exemption is conditional. State exemptions must be assessed separately.<\/td><\/tr><\/tbody><\/table><\/div><div class=\"lbm-faq\"><details id=\"section-3\"><summary>EU: PSD2 exclusions and PSD3 \/ PSR reforms<\/summary><p>PSD2, Directive (EU) 2015\/2366, and national implementing legislation provide the principal EU framework.<\/p>\n<h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Acquiring<\/h3>\n<p>Annex I, point 5 includes acquiring of payment transactions among regulated services. Acquiring involves contracting with a payee to accept and process payment transactions resulting in a transfer of funds to that payee.<\/p>\n<p>An aggregator that contracts directly with merchants to provide this service may qualify as an acquirer even where another institution handles card scheme settlement. The analysis includes merchant agreements, processing responsibilities and settlement arrangements.<\/p>\n<h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Technical service provider exclusion<\/h3>\n<p>Article 3(j) excludes certain supporting technical services where the provider never enters into possession of funds. Examples include data processing and storage, authentication, IT networks, data security and terminal maintenance.<\/p>\n<p>This is not a general exemption for companies using APIs. Payment initiation and account information services are not excluded merely because they are technology-based. The provider must establish that its role is genuinely technical.<\/p>\n<h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Commercial agent exclusion<\/h3>\n<p>Article 3(b) concerns agents authorised to negotiate or conclude sales of goods or services on behalf of only the payer or only the payee.<\/p>\n<p>Payment processing alone does not establish the necessary commercial agency functions. Aggregators should not assume that collecting payments for merchants brings them within this narrow exclusion.<\/p>\n<h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">PI or EMI?<\/h3>\n<p>Regulated acquiring or money remittance may require Payment Institution (PI) authorisation. Issuing monetary value that meets the legal definition of electronic money may require Electronic Money Institution (EMI) authorisation.<\/p>\n<p>A PI may maintain payment accounts within its authorised services without necessarily issuing e-money. We cover authorisation types and capital requirements in our article on <a href=\"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/\">EMI and payment institution licensing<\/a>.<\/p>\n<h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">PSD3 and PSR<\/h3>\n<p>The European Parliament and Council reached a provisional political agreement on the new framework on 27 November 2025. The Council adopted its first-reading position in October 2026, followed by Commission communications on 3 November 2026.<\/p>\n<p>As of 14 November 2026, PSD2 remains the principal applicable directive pending completion of the legislative process and commencement of the new framework. Applicants should consider forthcoming changes to governance, fraud prevention, operational risk and the relationship between PI and EMI regimes.<\/p><\/details><details id=\"section-4\"><summary>UK: the FCA\u2019s approach to PayFacs<\/summary><p>The Payment Services Regulations 2017 govern UK payment services. The FCA\u2019s PERG 15 guidance expressly addresses payment facilitators and acquiring.<\/p>\n<p>The acquiring definition may capture master merchants and PayFacs contracting with merchants to provide acquiring services. This can apply even where the provider is not the acquirer of record under card scheme arrangements or does not directly transfer funds to merchants.<\/p>\n<p>A UK gateway supplying software to merchants already contracted with a licensed acquirer may remain outside the perimeter. If it assumes responsibility for providing acquiring, the result may change.<\/p>\n<p>A business providing regulated services may need Authorised Payment Institution status or, if eligible, registration as a Small Payment Institution. SPI registration depends on statutory conditions, including transaction volumes; it is not an unrestricted alternative to full authorisation.<\/p><\/details><details id=\"section-5\"><summary>US: federal exemption and state requirements<\/summary><p>US aggregators must assess both federal Bank Secrecy Act rules and state money transmission laws.<\/p>\n<p>Under FinCEN rules, accepting funds or other value substituting for currency from one person and transmitting it to another person or location may constitute money transmission.<\/p>\n<p>Certain payment processing activities can qualify for an exemption. FinCEN identifies four relevant conditions:<\/p>\n<ol><li>The service facilitates purchases of goods or services or bill payments rather than money transmission itself.<\/li><li>It operates through clearance and settlement systems admitting only BSA-regulated financial institutions.<\/li><li>It is provided under a formal agreement.<\/li><li>An agreement exists at least with the seller or creditor receiving payment.<\/li><\/ol>\n<p>The actual transaction structure determines eligibility. A processor using regulated bank and card settlement infrastructure may qualify; distributing funds outside those arrangements may produce a different outcome.<\/p>\n<p>State requirements must be assessed separately. Definitions and exemptions for processors, authorised delegates and other intermediaries vary. FinCEN registration, where required, does not replace state licences.<\/p><\/details><\/div><\/section><section id=\"section-6\"><h2>Can a licensed partner replace your own licence?<\/h2><p>A licensed partner can support several lawful models, but a commercial agreement does not automatically extend its licence to an independent business.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-code-xml\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Technical provider<\/h3><p>The aggregator supplies software and infrastructure; the licensed PSP contracts with merchants and performs regulated services. The aggregator may not need its own licence if it genuinely remains a technical provider.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-badge-check\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Registered agent<\/h3><p>Where permitted, an aggregator may act on behalf of a payment institution as a registered agent. Under PSD2, this involves registration, oversight and compliance requirements. The institution remains responsible within the applicable legal framework.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-workflow\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Outsourcing<\/h3><p>A PSP may outsource technical or operational functions, subject to applicable governance, outsourcing and operational resilience requirements. Outsourcing does not automatically transfer the PSP\u2019s regulatory responsibilities.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-credit-card\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Independent PayFac<\/h3><p>An aggregator independently providing acquiring or other regulated services may still require its own authorisation despite partnering with an acquirer.<\/p><\/div><\/div><\/section><section id=\"section-7\"><h2>Compliance, funds and merchant contracts<\/h2><p>Licensing is only part of the assessment. Responsibilities must be consistent across payment flows, contracts and day-to-day operations.<\/p><div class=\"lbm-roles\" style=\"grid-template-columns:1fr\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-shield-check\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Merchant onboarding and AML<\/h3><p>Establish KYB, beneficial ownership checks, sanctions screening, risk classification and transaction monitoring. Apply enhanced checks to high-risk merchants where appropriate and allocate suspicious activity reporting responsibilities. For practical procedures, see our article on <a href=\"https:\/\/legalbit.top\/en\/kyc-kyb-payment-providers\/\">KYC and KYB for payment providers<\/a>.<\/p>\n<p>A technical provider does not necessarily have the same statutory AML duties as a licensed PSP, although contracts may assign compliance tasks.<\/p>\n<\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-credit-card\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Safeguarding<\/h3><p>Where a regulated institution receives relevant payment funds, segregation or another permitted safeguarding method may be required. PSD2 Article 10 applies to institutions providing Annex I services 1\u20136.<\/p>\n<p>Assess ownership and control of funds, reconciliation, settlement delays, refunds, chargebacks, reserves and insolvency protection. A reserve account alone does not determine regulatory treatment.<\/p>\n<\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#payment-files\"\/><\/svg><\/span><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Merchant agreements<\/h3><p>Identify who processes payments, holds funds and settles with merchants. Define permitted businesses, fees, chargeback liability, rolling reserve calculations and release conditions, suspension rights, data protection duties and liability for losses. We explain clauses against disguised third-party payments in our article on <a href=\"https:\/\/legalbit.top\/en\/merchant-agreement-transaction-laundering\/\">protecting acquirers and PSPs from transaction laundering<\/a>.<\/p>\n<p>PayFac agreements also need to reflect monitoring, reporting and financial obligations imposed by the acquirer and card schemes. See our article on <a href=\"https:\/\/legalbit.top\/en\/payfac-sub-merchant-liability\/\">payment facilitators, aggregators and responsibility for sub-merchants<\/a>.<\/p><\/div><\/div><\/section><section id=\"section-8\"><h2>What to check before launch<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#payment-route\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Map payment flows<\/h3><p>identify who receives, holds, controls and transfers funds.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-files\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Review contracts<\/h3><p>determine who undertakes to provide acquiring and whether merchants contract directly with the licensed PSP.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-split\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Separate functions<\/h3><p>distinguish technical services from regulated payment activities.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-map-pinned\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Test the proposed structure<\/h3><p>assess technical provider, agency, outsourcing or independent PSP status in each target jurisdiction.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-shield-check\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Allocate compliance<\/h3><p>document onboarding, monitoring, safeguarding and incident responsibilities.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-files\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Prepare agreements<\/h3><p>align PSP, merchant, outsourcing and data processing documents with the operational model.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#payment-badge-check\"\/><\/svg><\/span><div><h3 style=\"font-family:'Cormorant Garamond',Georgia,serif!important;font-size:21px!important;font-weight:700!important;line-height:1.35!important\">Obtain a regulatory assessment<\/h3><p>confirm whether authorisation or registration is required before launch.<\/p><\/div><\/li><\/ol><p>A disclaimer saying that the company is not a PSP will not prevent regulation if its activities fall within the licensing perimeter.<\/p><\/section><section id=\"faq\"><h2>Frequently asked questions<\/h2><div class=\"lbm-faq\"><details><summary>Does every aggregator need a licence?<\/summary><p>No. A purely technical provider may operate without payment institution authorisation. Acquiring, remittance and other regulated services require a separate assessment.<\/p><\/details><details><summary>Can a PayFac need authorisation without holding funds?<\/summary><p>Yes. In the EU and UK, the provider\u2019s acquiring responsibilities can trigger regulation even when settlement runs through a bank.<\/p><\/details><details><summary>Does an aggregator always need an EMI licence?<\/summary><p>No. EMI authorisation concerns e-money issuance. Acquiring or remittance does not automatically constitute issuing e-money.<\/p><\/details><details><summary>Is a partnership with a licensed PSP enough?<\/summary><p>Only if the actual structure supports the relevant legal model. A partnership alone does not authorise an independent business to provide regulated services.<\/p><\/details><\/div><\/section><section id=\"conclusion\"><h2>Conclusion<\/h2><p>Assess the business model before choosing a licensing structure. The decisive factors are the services promised to merchants, responsibility for processing and control of funds. Clear contracts and operational boundaries help establish whether an aggregator needs its own authorisation or can work as a technical provider, agent or outsourced partner.<\/p>\n<p><em>LegalBit advises payment businesses on PI and EMI licensing, PayFac structures, merchant agreements and AML\/KYB compliance.<\/em><\/p><\/section><div class=\"lb-ac\"><h2>This topic is our service<\/h2><p>Learn more about how we help payment businesses with licensing, contracts and compliance:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/fintech-payments-legal\/\">Fintech and payment services<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/regulatory-and-compliance\/\">Licensing, compliance and AML\/KYC<\/a><\/li><\/ul><\/div>\n<p class=\"lbm-more\"><b>See also: <\/b><a href=\"https:\/\/legalbit.top\/en\/payfac-sub-merchant-liability\/\">Payment Facilitators, Aggregators and ISOs<\/a>; <a href=\"https:\/\/legalbit.top\/en\/payment-institution-emi-licence-eu-uk-canada\/\">EMI and Payment Institution Licensing<\/a>; <a href=\"https:\/\/legalbit.top\/en\/kyc-kyb-payment-providers\/\">KYC and KYB for Payment Providers<\/a>; <a href=\"https:\/\/legalbit.top\/en\/merchant-agreement-transaction-laundering\/\">Merchant Agreements and Transaction Laundering<\/a>. Services: <a href=\"https:\/\/legalbit.top\/en\/fintech-payments-legal\/\">legal support for fintech and payments<\/a>.<\/p>\n<div class=\"lbm-src\"><details><summary><b>Sources and Legal References<\/b><small>8 documents<\/small><\/summary><ol><li><a href=\"https:\/\/eur-lex.europa.eu\/eli\/dir\/2015\/2366\/oj\/eng\" target=\"_blank\" rel=\"nofollow noopener\">Directive (EU) 2015\/2366 \u2014 Payment Services Directive (PSD2)<\/a><\/li><li><a href=\"https:\/\/finance.ec.europa.eu\/consumer-finance-and-payments\/payment-services\/payment-services_en\" target=\"_blank\" rel=\"nofollow noopener\">European Commission \u2014 Payment Services<\/a><\/li><li><a href=\"https:\/\/handbook.fca.org.uk\/handbook\/PERG\/15\/\" target=\"_blank\" rel=\"nofollow noopener\">FCA \u2014 PERG 15: Payment Services Regulatory Perimeter<\/a><\/li><li><a href=\"https:\/\/www.fca.org.uk\/firms\/payment-services-regulations-e-money-regulations\" target=\"_blank\" rel=\"nofollow noopener\">FCA \u2014 Payment Services and Electronic Money Regulations<\/a><\/li><li><a href=\"https:\/\/www.fca.org.uk\/publication\/finalised-guidance\/payment-services-electronic-money-approach-march-2026.pdf\" target=\"_blank\" rel=\"nofollow noopener\">FCA \u2014 Payment Services and Electronic Money: Our Approach, March 2026<\/a><\/li><li><a href=\"https:\/\/www.fincen.gov\/resources\/statutes-regulations\/administrative-rulings\/application-money-services-business\" target=\"_blank\" rel=\"nofollow noopener\">FinCEN \u2014 Application of MSB Regulations to an Independent Sales Organization and Payment Processor<\/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\" target=\"_blank\" rel=\"nofollow noopener\">European Parliament \u2014 Revision of EU Rules on Payment Services<\/a><\/li><li><a href=\"https:\/\/publications.europa.eu\/resource\/cellar\/8b93d227-d797-11f1-b0c5-01aa75ed71a1.0001.03\/DOC_1\" target=\"_blank\" rel=\"nofollow noopener\">European Commission \u2014 Position on the PSD3 Legislative Proposal, 3 November 2026<\/a><\/li><\/ol><\/details><\/div><p class=\"lbm-verified\">This material is general information and is not legal advice. Information reviewed as of 14 November 2026. Rules and deadlines change: check the official requirements for your business model and target markets before implementation.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Payment aggregators connect merchants to acquiring banks and payment service providers through a common integration. They can simplify onboarding, payment processing and settlement. Whether they need a licence depends on the services they actually provide. This article explains the main distinctions in the EU, UK and US and the contractual and compliance issues to assess [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9985,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[72],"tags":[],"post_folder":[],"class_list":["post-9986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech"],"acf":[],"_links":{"self":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/9986","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=9986"}],"version-history":[{"count":10,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/9986\/revisions"}],"predecessor-version":[{"id":10002,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/9986\/revisions\/10002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media\/9985"}],"wp:attachment":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media?parent=9986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/categories?post=9986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/tags?post=9986"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/post_folder?post=9986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}