This article looks at obtaining a Payment Institution license in the UK. If you are planning upon offering payment services such as issuing debit cards, money transfer services or merchant services, you will need to apply with the UK regulator, the Financial Conduct Authority and obtain the payment institution license in the UK.
1. Regulatory framework for UK Payment Institutions
PSD2, or the Payment Service Directive 2, is an EU Directive (Directive 2015/2366) which sets requirements, including for UK payment institutions 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.
The following regulations are also applicable for payment institutions: