Licensed Provider
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59+ Jurisdictions
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Fixed Pricing
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Secure Payments
🇪🇺 European Union — EMD2 / PSD2
Get an EMI License in Europe
Obtain your Electronic Money Institution authorization under EU Directive 2009/110/EC (EMD2) and PSD2. Issue e-money, provide IBANs, offer SEPA payments, and passport across all 30 EEA countries.
Quick Facts
Total CostFrom $80,000
Timeline6–12 Months
Min. Capital€350,000
Passporting30 EEA Countries
RegulatorNational NCA
Stablecoin (EMT)MiCA Art. 48
Local Presence🏢 EU (Lithuania, Estonia)
59+
Jurisdictions6
License Types24h
Response TimeDubai
Headquarters100%
Fixed PricingWhy EMI
Why Fintech Companies Need an EMI License
An Electronic Money Institution license is one of the most commercially powerful regulatory authorizations in European finance. Over 700 EMIs are authorized across the EEA, processing billions in digital payments.
Passport Across 30 EEA Countries
An EMI license obtained in one EU member state enables you to provide e-money and payment services across all 30 EEA countries — 27 EU states plus Iceland, Liechtenstein, and Norway — without separate national authorizations. No offshore license can replicate this market access.
Issue IBANs & SEPA Payments
Licensed EMIs can join SEPA directly, open individual IBAN accounts for clients, process SEPA Credit Transfers and Direct Debits, and issue prepaid cards — core infrastructure for neobanks, payment platforms, and fintech applications.
Issue Stablecoins Under MiCA
Under MiCA Article 48, only authorized EMIs or credit institutions can issue Electronic Money Tokens (EMTs) — fiat-backed stablecoins. An EMI license is the prerequisite for stablecoin issuance in the EU. This is why USDC issuer Circle holds an EMI license.
Not a Bank — But Close
EMIs can issue e-money, hold client funds in segregated accounts, and provide payment services — all without a full banking license. The €350,000 capital requirement is a fraction of banking capital (typically €5M+). EMIs cannot accept deposits or provide lending.
Neobank Foundation
Most European neobanks (Revolut, N26, Wise) started with EMI licenses before upgrading to banking licenses. An EMI is the proven launchpad for fintech platforms offering digital wallets, payment accounts, multi-currency cards, and cross-border transfers.
Crypto + Fiat Bridge
Combine an EMI license with a MiCA CASP license to offer full crypto-to-fiat infrastructure. Accept EUR deposits via SEPA, enable fiat on/off ramps, and issue stablecoins — all under one regulatory umbrella.
Regulatory Framework
EMI Regulation in Europe
The legal framework governing Electronic Money Institutions and what it means for your fintech business.
EMD2 (Directive 2009/110/EC) is the primary law. The Electronic Money Directive 2 establishes authorization requirements, minimum capital (€350,000), client fund safeguarding obligations, and consumer protection rules for all EMIs operating in the EU/EEA. National regulators (NCAs) implement and enforce EMD2 in their jurisdictions.
PSD2 (Directive 2015/2366) governs payment services. The Payment Services Directive 2 defines the payment services EMIs can provide, including payment accounts, SEPA transfers, card issuance, and payment initiation. EMIs must comply with both EMD2 and PSD2 simultaneously.
MiCA (Regulation 2023/1114) adds stablecoin rules. Under MiCA Article 48, EMI authorization is required for issuing Electronic Money Tokens (EMTs). This makes an EMI license essential for any company planning to issue fiat-backed stablecoins in the EU.
PSD3 is coming in 2027. A provisional agreement was reached in November 2025. Under PSD3, EMIs become a sub-category of Payment Institutions, and EMD2 will be repealed. Existing EMI licenses will be grandfathered for 24 months. Applying now under EMD2/PSD2 provides grandfathering protection.
Requirements
EMI License Requirements
What you need to obtain an Electronic Money Institution authorization in the EU.
EU Legal Entity & Substance
Incorporate in an EU member state with a physical office and local management. At least two EU-resident managers required. Sovera handles formation in Lithuania, Estonia, Cyprus, Malta, or Ireland.
Initial Capital €350,000
Minimum initial capital of €350,000 must be fully paid up and unencumbered. The NCA may require additional capital (2–3x) based on your business plan. Own funds must never fall below initial capital plus ongoing requirements calculated per EMD2 Article 5.
Client Fund Safeguarding
Client funds must be segregated in a dedicated account with an EU credit institution or covered by equivalent insurance. Funds must be ring-fenced by end of business on the day of receipt. This is a core EMD2 and PSD2 requirement that distinguishes EMIs from banks.
AML/CFT & KYC Framework
Full compliance with EU AMLD (Anti-Money Laundering Directives), FATF Recommendations, KYC/CDD procedures, transaction monitoring, sanctions screening, and Suspicious Activity Reporting. Appointment of a qualified MLRO mandatory.
Technology & Operational Resilience
Robust IT infrastructure, cybersecurity, business continuity planning, and incident reporting. Compliance with DORA (Digital Operational Resilience Act) requirements. Payment systems must meet PSD2 Strong Customer Authentication (SCA) standards.
Process
How to Get an EMI License
From jurisdiction selection to authorized e-money operations across the EEA.
1
Week 1–3
Jurisdiction Selection & Strategy
We assess your business model (neobank, payment platform, stablecoin issuer, crypto-fiat bridge) and recommend the optimal EU jurisdiction. Key factors: NCA processing speed, corporate tax, banking environment, and fintech ecosystem.
2
Week 3–8
Entity Formation & Compliance Build-Out
Incorporate your EU entity. Develop the full compliance package: AML/CFT policies, KYC procedures, client fund safeguarding, IT security framework, DORA compliance, business continuity plan, complaints handling, and governance structure.
3
Month 2–3
Capital Deployment & Management Team
Deploy €350,000 initial capital into an EU credit institution. Appoint qualifying management team (CEO, CCO, MLRO, CTO). All key personnel must pass Fit and Proper assessment with the NCA.
4
Month 3–4
NCA Application Submission
File the EMI authorization application with the National Competent Authority. The dossier includes business plan, governance policies, capital proof, management CVs, IT infrastructure documentation, and AML/CFT framework.
5
Month 4–12
NCA Review, Authorization & Passporting
The NCA reviews your application (6–12 months). We manage all regulator communications. Upon authorization, file passporting notifications to additional EEA countries. Set up banking relationships and begin operations.
Cost Breakdown
EMI License Costs
Total first-year cost from $80,000 excluding capital. Full transparency on all fees.
| Item | Cost (USD) |
|---|---|
| EU Entity Formation (Lithuania/Estonia) | $3,000–$5,000 |
| NCA Application & Processing Fees | $5,000–$15,000 |
| Compliance Framework Build-Out | $25,000–$60,000 |
| Key Personnel (CEO, CCO, MLRO, CTO) | $15,000–$35,000 |
| Legal & Regulatory Advisory | $15,000–$40,000 |
| IT Infrastructure & DORA Compliance | $10,000–$25,000 |
| Office & EU Substance (Annual) | $8,000–$20,000 |
| Total (First Year, excl. capital) | From $80,000 |
Initial capital (€350,000) is separate — held as company equity, not paid to Sovera. The NCA may require additional capital based on your business plan. Ongoing costs: $10,000–$25,000/month for compliance maintenance, reporting, and audits. Sovera provides fixed-price quotes tailored to your jurisdiction and business model.
Comparison
EMI vs. Other EU Financial Licenses
How an EMI license compares to other EU regulatory authorizations.
| EMI License E-Money | PI License | Banking License | MiCA CASP | Small EMI | |
|---|---|---|---|---|---|
| Min. Capital | €350,000 | €125,000 | €5M+ | €50K–150K | None |
| Issue E-Money | Yes | No | Yes | No | Yes (<€5M) |
| SEPA / IBANs | Yes | Yes | Yes | No | Limited |
| Passporting | 30 EEA states | 30 EEA states | 30 EEA states | 27 EU states | Home state only |
| Stablecoins (EMT) | Yes (MiCA Art.48) | No | Yes | No | No |
| Timeline | 6–12 months | 3–9 months | 12–24 months | 3–6 months | 1–3 months |
| Best For | Neobanks, Wallets, Stablecoins | Payment processing | Full banking services | Crypto services | Small fintechs |
FAQ
Frequently Asked Questions
How much does an EMI license cost?
Total first-year costs start from approximately $80,000 for application, compliance build-out, and substance. Initial capital of €350,000 is separate company equity. The NCA may require 2–3x capital depending on your business plan.
How long does EMI authorization take?
Typically 6–12 months from application to authorization. Lithuania and Estonia tend to process faster. The NCA reviews governance, capital, AML/CFT, and technology infrastructure.
What is the difference between an EMI and a PI?
An EMI can issue electronic money and hold client funds in e-wallets. A Payment Institution (PI) can process payments but cannot issue e-money or hold client balances. EMI capital is €350,000 vs €125,000 for PI.
Can an EMI issue stablecoins?
Yes. Under MiCA Article 48, only authorized EMIs or credit institutions can issue Electronic Money Tokens (EMTs) in the EU. This makes an EMI license essential for fiat-backed stablecoin issuance.
Which EU country is best for an EMI license?
Lithuania has 80+ authorized EMIs and fast processing. Cyprus offers favorable tax and substance. Malta has strong fintech infrastructure. Ireland provides English common law and EU/US bridge.
What services can an EMI provide?
Issue and manage electronic money, provide payment accounts with IBANs, execute SEPA Credit Transfers and Direct Debits, issue prepaid and debit cards, process domestic and cross-border payments, and provide currency exchange services.
What happens with PSD3?
Under PSD3 (provisional agreement November 2025, expected in force Q2 2026), EMIs become a sub-category of Payment Institutions. Existing EMI licenses are grandfathered for 24 months. Applying now under EMD2/PSD2 provides grandfathering protection for your authorization.
Can Sovera handle the entire EMI licensing process?
Yes. Sovera provides end-to-end EMI licensing: jurisdiction selection, EU entity formation, compliance framework build-out, key personnel appointments, NCA application management, and post-authorization ongoing compliance. We also handle banking introductions and SEPA integration.
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🏢 Our presence in EU (Lithuania, Estonia)
Sovera operates through EU-based partners in Lithuania, Estonia, Cyprus, and Ireland for EMI licensing, entity formation, and ongoing regulatory compliance.
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Issue e-money, provide IBANs, passport across 30 countries. Get your personalized quote.