Payment institution license
A payment institution license enables a business to provide regulated payment services. In most European countries, including the UK, Germany, France, Lithuania and Ireland, the license required to provide regulated payment services is called a payment institution. An authorised payment institution license enables a business to provide payment services across the European Economic Area. Some countries, including the UK, provide the optional of an additional license with less stringent conditions and requirements. In the UK this license is known as a small payment institution.
Let’s look at the payment services a payment institution license holder is able to provide to its users.
1. Payment accounts. Examples of a payment account include debit cards and payment cards. The user is able to place and withdraw cash on such accounts as well as use the account card to make payment transaction, using the card to buy goods and services. Users are also able to setup direct debits standing orders as well as transferring funds.
2. Merchant services. Holders of the payment institution license are able to provide merchant services. This can include acting as a master merchant and offering merchants the ability to accept card payments.
3. Money remittance. Money remittance or transfer is another service payment institutions are able to offer. This service enables the payment service provider to enable users to make cross border payments, internationally.
4. Payment initiation services. Under this model, an initiator I.e. as a payment service provider under the payment institution licence, subject to the user's consent, is able to initiate a payment directly from the user's bank account and transfer the amount directly to the merchant retailer’s bank account, removing the Visa and Mastercard networks from the payment process.
5. Account information services. Under this permission, subject to the user's consent, a payment service provider is able to provide access to a user’s accounts and enable them to view consolidated account information in one place.
Buckingham Capital Consulting is a leading international consulting firm, specialising in payment services, electronic money, banking and investment services. We are able to advise you on the best course of action and strategy based upon your business plan and financial product or service. We can help you with licencing, compliance, operational setup and related services, including, obtaining banking facilities.
Call us today on 02078662512 or 442078662512 if you are calling from abroad. You can send an email to firstname.lastname@example.org to arrange a telephone call or to discuss your requirements and plan. We are also able to arrange calls or conference calls using Skype. Our Skype ID is BCC54321. If you wish, we can arrange a meeting at one of our offices.
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