Below we discuss the process of offering e-money in the form of branded prepaid cards.
1. Form a limited company.
2. Obtain an electronic money institution (EMI) licence
Here you have two options.
Under option 1, you can register as a small electronic money institution. This option does not have an initial capital requirement and you will be able to issue your own cards.
Under option 2, you can become authorised as an authorised electronic money institution (EMI). The initial capital requirement is €350,000. Once you become regulated you can issue your cards across Europe to some 512 million people.
In order to successfully obtain the EMI registration or authorisation, you will need to demonstrate to the regulator that you have the adequate financial and non-financial resources to manage the business, including suitable employees, an office and IT systems.
3. Obtain cards
Once you have successfully obtained your licence you will either need to become a principal member with Visa or Mastercard. Alternatively, you can approach an existing principal member who will be able to help you issue branded cards.