Enabling you to offer payment services to the EU market, including, payment accounts, payment processing, merchant acquiring and money transfer services.
Payment Institution (PI)
Lithuania
Payment Institution Licence in Lithuania
If you wish to provide certain payment services, such as money transfer, payment processing/merchant acquisition, payment initiation or account initiation services, we can help you obtain the Payment Institution Licence in Lithuania, also known as the PI Licence, and provide such services across Europe. To make an application, you must apply to the Lithuanian regulator, namely the Bank of Lithuania
Below you will find key information and requirements to obtain the Payment Institution Licence in Lithuania, also known as the PI Licence.
A fully managed end-to-end service
Payment Institution Licence
Company Formation
Safeguarding bank account
Payment System, E-wallets & apps
Visa/Mastercard IBAN Card Issuing
List of services you can provide with a Payment Institution Licence in Lithuania
A Payment Institution Licence in Lithuania, also known as the PI Licence, enables the licence holder to provide the following payment services:
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services enabling cash to be placed on a payment account and all of the operations required for operating a payment account;
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services enabling cash withdrawals from a payment account and all of the operations required for operating a payment account;
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the execution of payment transactions, including transfers of funds on a payment account with the user’s payment provider or with another payment service provider, including, execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; execution of credit transfers, including standing orders;
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the execution of payment transactions where the funds are covered by a credit line for a payment service user, including the execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; (iii)execution of credit transfers, including standing orders;
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issuing payment instruments or acquiring payment transactions;
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money remittance;
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payment initiation services;
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account information services.
Process for the Payment Institution Licence in Lithuania
Legal framework and legislation for Payment Institutions (PI) in Lithuania
The Bank of Lithuania is the Lithuanian financial services regulator. It supervises firms including Payment Institutions (PIs) in Lithuania.
- Republic of Lithuania Law on Financial Institutions
- Republic of Lithuania Law on Companies
- Republic of Lithuania Law on Electronic Money Institutions
- Law of the Republic of Lithuania on the Prevention of Money Laundering and Terrorist Financing
- Law of the Republic of Lithuania on Payments
- Resolution No 246 of the Board of the Bank of Lithuania of 30 December 2009 on the Regulations on Keeping the Public Register of Payment Institutions
- Resolution No 03-181 of the Board of the Bank of Lithuania of 14 November 2013 on approval of the Guidelines on the Assessment of Members of the Management Body and Key Function Holders of the Financial Market Participants Supervised by the Bank of Lithuania
Advantages of obtaining a Payment Institution Licence in Lithuania
The Lithuanian financial regulator, namely, the Bank of Lithuania, is a friendly and supportive regulator. Some key advantages include:
- a newcomer programme for firms looking to set up their fintech in Lithuania.
- a smooth licencing process – 3 months for electronic money or payment institution licences.
- remote KYC for customer onboarding whilst relaxing on financial penalties for start-ups – for example, no regulatory fines or penalties in the first year of operation.
- access SEPA and CENTROlink – a payment system developed and operated by the Bank of Lithuania.
Key features of the Payment Institution Licence in Lithuania
- a licence issued in Lithuania is recognised in all other EEA (European Economic Area) member states. Through ‘passporting’, this enables the payment institution to operate across all EEA countries with a single licence.
- issue payment accounts with IBAN codes, across Europe.
- obtain the Payment Institution licence in as little as 3 months.
- join payment schemes such as SEPA.
- remote account opening for individual and business customers.
- issue Visa or Mastercard payment cards for both individual and business users.
Documents required for the Payment Institution (PI) Licence in Lithuania
As part of a Payment Institution / PI licence application in Lithuania, the following information must be prepared and provided to the regulator:
- company identification details
- programme of operations
- business plan and financial forecasts
- a description of your business’s organisation structure
- evidence of your initial capital
- measures to safeguard the funds of your users
- compliance & governance arrangements and internal controls
- procedure for monitoring, handling, and following up on security incidents and security-related customer complaints
- processes for filing, monitoring, tracking and restricting access to sensitive payment data
- business continuity measures
- the principles and definitions applicable to the collection of statistical data on performance, transaction and fraud
- security policy
- internal control mechanisms to comply with obligations in relation to money laundering and terrorist financing (AML/CTF obligations)
Overview of the Payment Institution Licence in Lithuania
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