Where rules allow (e.g. an EU/EEA license), passport into multiple markets from one base — scale without re-licensing everywhere.
Payment License
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Almost every modern business touches money transfers, payment processing, e-money or digital wallets — and for that you need a payment license. The rules apply everywhere, but they differ by market: in the EU it's PSD2 and EMD2; in the US, each state has its own Money Transmitter License.
Navigating this is complex.
Legarithm handles the whole process — helping you obtain the licenses you need and stay compliant, wherever you want to do business.
Why businesses choose Legarithm for payment licensing
You get one accountable team owning the whole outcome, instead of juggling separate lawyers, accountants and consultants.
We prepare applications to the regulator’s standard — avoiding the rejections and delays that catch first-time applicants — and secure real banking and PSP access, the make-or-break step that turns a license into a working business.
And with reach across the EU, UK, US, UAE and beyond, we place you in the jurisdiction that fits your model and help you scale into others.
Benefits of a payment license
Who needs a payment license
Check if your business is obliged to hold one.
Fintech startups
Neobanks, challenger banks and digital financial platforms need a payment license to operate legally. It’s also essential for securing investor confidence and market credibility from launch.
Payment processors & gateways
PSPs, aggregators, merchant acquirers and gateway operators handle card and alternative payments. Moving funds between merchants and customers requires a license.
Digital wallet providers
E-wallets, mobile wallets, stored-value accounts and P2P payment apps let users store and send funds electronically. That activity is licensed.
Money transfer services
Remittance and cross-border transfer operators move client funds domestically and internationally. Both traditional and digital models require authorization.
Cryptocurrency platforms
Exchanges, custodial wallets, crypto payment processors, stablecoin issuers and DeFi handle assets on behalf of others. Most jurisdictions now require a license.
E-commerce platforms & marketplaces
Large marketplaces hold funds in escrow or process payments between buyers and sellers. Handling third-party money triggers a licensing obligation.
Prepaid card issuers
Prepaid, gift, travel and corporate expense cards store monetary value. Issuing them requires e-money authorization.
Gaming & gambling operators
Player deposits, withdrawals and prize payouts involve processing customer funds. This needs a payment license alongside the gaming authorization.
PSP vs EMI — which payment license do you need?
| Feature | Payment Institution (PSP / PI) | Electronic Money Institution (EMI) |
|---|---|---|
| Scope | Payment services: transfers, processing, transaction facilitation | All PI services + issue e-money, prepaid cards and wallets with IBAN |
| Issue e-money? | No | Yes |
| Min. capital (EU) | €125,000 | €350,000 |
| Best for | Processing / transfer-focused models | Wallets, cards, stored value, full-stack fintech |
Capital figures are indicative for the EU and confirmed per jurisdiction. Not sure which fits? We’ll tell you in the consultation.
Our payment license services
Everything you need to get licensed and stay compliant — license selection, application, corporate setup, banking and ongoing regulatory support.
License type & jurisdiction consultation
We analyze your business model and target markets. Then we compare requirements, timelines, costs and advantages to pick the optimal license and country.
Application preparation & submission
We prepare your business plan with projections, compliance policies, risk framework and governance documents. We submit and manage the application with the regulator.
Compliance framework
We build FATF-compliant AML/KYC, transaction monitoring and due diligence. We add GDPR/data protection and regulatory reporting systems.
Corporate structuring & entity formation
We handle incorporation, shareholder structure and director appointments. Governance is aligned with your licensing requirements.
Banking & PSP facilitation
We arrange acquiring-bank selection, IBAN and account opening. We set up correspondent banking, card-network and gateway integrations.
Ongoing compliance & regulatory support
We manage reporting, annual audits, renewals and change notifications. We also cover staff training and incident management.
Payment License by Jurisdiction
This isn’t the whole list — tell us the one you need via Telegram, WhatsApp or the form.
| Jurisdiction | Regulator / Framework | Min. capital | Timeline | Key advantage |
|---|---|---|---|---|
| EU (LT, LV, MT, EE) | PSD2 / EMD2 | €125k PI · €350k EMI | 3–6 months | EEA passporting across 27+ states |
| United Kingdom | FCA (PSR 2017 / EMR 2011) | up to €125k · £350k EMI | 6–12 months | Global fintech reputation |
| United States | State MTL + FinCEN MSB | Varies by state | 12–24 months | World’s largest payments market |
| United Arab Emirates | Central Bank / ADGM / DIFC | By category | 6–12 months | MENA gateway, 0% income tax |
| Singapore | MAS (PS Act 2019) | S$100k–250k | 4–8 months | Trusted APAC hub |
| Canada | FINTRAC MSB + RPAA | No fixed minimum | 2–4 months | Accessible North-America entry |
| Switzerland | FINMA (Fintech license) | ~CHF 300k | 6–12 months | Premium reputation & stability |
Frequently Asked Questions
Still have questions?
Can't find the answer to your question? Send us an email and we'll get back to you as soon as possible!
What's the difference between PSP and EMI licenses?
A PSP (Payment Institution) license covers payment services without issuing e-money; an EMI license adds e-money, prepaid cards and IBAN wallets, with higher capital. See the full comparison in the table above.
Can I operate internationally with one payment license?
Within the EU/EEA, a license in one member state can be passported across others. Outside that zone (e.g. UK, US, UAE), you generally need a local license per market. We map the most efficient route for your target countries.
What do I need to keep my payment license compliant?
Ongoing AML/KYC and transaction monitoring, periodic regulatory reporting, annual audits, safeguarding of client funds, timely renewals and prompt notification of material changes.
Do I need a payment license if I only process payments for my own business?
Usually not, if you only handle your own commercial payments. But once you hold, transfer or process funds on behalf of third parties, a license is typically required. We confirm based on your exact flow of funds.
What happens if I operate without a required payment license?
Unlicensed activity risks fines, enforcement action, frozen accounts, loss of banking relationships and, in some jurisdictions, criminal liability. Getting licensed first protects the business and its founders.
How do I know which type of payment license my business needs?
It depends on whether you issue e-money, hold client funds, and where your customers are. Share your model with us and we’ll recommend the right license type and jurisdiction.
We Are Always Available
Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.
Estonia
Ukraine
Cyprus
UAE
United States
Cyprus, Nicosia
Arch. Makarios Av. III, No. 1-7, Mitsis Building 3, 3rd floor, Office 302, 1065 Nicosia
Estonia, Tallinn
Tallinn, Harju maakond, Lasnamäe linnaosa, Ruunaoja tn 3, 11415
UAE, Dubai
Building A1, Dubai Digital Park, Dubai Silicon Oasis, Dubai, UAE
Ukraine, Kyiv
Kyiv, Mykhailo Boychuk Street, Office 3011, 01103, Ukraine
United States, New York
228 Park Ave S, New York City, New York, 10003, USA
Get in Touch
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