This article looks at how to become an electronic money institution in Lithuania. If you wish to become an electronic money institution in Lithuania then you must prepare and submit an electronic money institution application in Lithuania to the Bank of Lithuania.
Key features of becoming an Electronic Money Institution in Lithuania
By becoming an electronic money institution in Lithuania, your license will be recognised in all other EEA (European Economic Area) member states.
A number of key advantages to becoming an electronic money institution in Lithuania are:
- Issue e-money, such as prepaid cards, electronic wallets and payment accounts with IBAN codes, across Europe.
- Obtain the electronic money institution ((e-money) license in as little as 3 months.
- You can access SEPA and CENTROlink – a payment system developed and operated by the Bank of Lithuania.
- Remote account opening for individual and business customers.
- Issue Visa or Mastercard payment cards for both individual and business users.
- The regulator offers 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.
The key requirements of the Electronic Money Institution license in Lithuania
- A minimum capital requirement of €350,000 to establish an electronic money institution (e-money) license in Lithuania
- The requirement to safeguard client funds either with a segregated client bank account or with an insurance policy.
- The management body of the electronic money institution in Lithuania must be of good repute and possess the relevant qualifications and experience to perform their duties.
- Whilst Lithuanian legislation does not require for the management body to reside in Lithuania, it is advised that the Lithuanian electronic money institution has one director or representative in Lithuania who is able to make decisions and is available to the Lithuania regulator.
List of services you can offer with the Electronic Money Institution license in Lithuania
1. Issue e-money e.g. prepaid cards and electronic wallets.
2. Provide cards (like debit cards) where the customer can also withdraw and place cash on the card.
3. Enable users to set up direct debits, standing orders and credit transfers.
4. Process payments, especially as a master merchant – enabling retailers to accept card payments.
5. Provide money transfer services
6. Payment initiation
7. Account initiation
Next Steps
Based in Lithuania, Matis is a leading payments and e-money consulting firm. We enable businesses to provide payment such as issuing debit cards and processing payments and issuing e-money, such as prepaid cards and electronic wallets. Our services are delivered and led by a team of experts, who are passionate and care about the work they do.
In order to provide payment services or electronic money in Lithuania, such as enabling retail merchants to accept card payments, enabling individuals to transfer money to others, offering payment banking accounts, debit cards, prepaid cards and e-wallets, you must obtain either a payment institution licence or an electronic money institution licence. We manage the end-to-end process of setting up, including licencing, compliance, systems and operational setup. For more information, visit our website on www.matis.lt
Send an email to info@matis.lt to discuss further.
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