This article looks at obtaining an Authorised Electronic Money Institution (e-money) or Authorised Payment Institution license in Cyprus. If you are planning upon offering payment services such as issuing debit cards, money transfer service, merchant services or electronic wallets and prepaid cards, you will need to apply with the Cyprus regulator, the Central Bank of Cyprus, before you can offer such services.
In this article, we will look at:
The second Payment Service Directive (PSD2) and its significance to payment services and electronic money.
The Cyprus regulator
The Authorised Payment Institution license
Authorised Payment Institution permissions
What is electronic money?
Authorised Electronic Money license application
Authorised Electronic Money Institution
How to prepare a strong license application
Apply to become an authorised payment institution or electronic money
Initial capital requirements
1. The second Payment Service Directive (PSD2) and its significance to payment services and electronic money
PSD2, or the Payment Service Directive 2, is an EU Directive (Directive 2015/2366) which sets requirements for businesses that provide payment services. It applies to banks, building societies, payment institutions, e-money institutions and their customers.
PSD aims to promote innovation within the payments sector. Furthermore, it aims to improve protection for consumers and make payments both safer and more secure.
The PSD2 directive came into force on 13 January 2018.
Its main objectives are to: