PAYMENT INSTITUTION LICENSE FOR GLOBAL MONEY REMITTANCE AND PAYMENT PROCESSING. PAYMENT SERVICE PROVIDER LICENSING IN EUROPE (EU)

Services provided by the Payment Institution

• services enabling cash to be placed on a payment account
• services enabling cash withdrawals from a payment account
• execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
• execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
• issuing and/or acquiring of payment instruments
• money transfers
• execution of payment transactions where the consent of the payer to execute a payment transaction is given by the means of any telecommunications terminal equipment, digital or IT device and the payment is made to the telecommunications network or IT system operator who is acting only as an intermediary between the supplier of goods or provider of services and the payment service user
• Payment Initiation Service (PSD2 implementation)
• Account Information Service (PSD2 implementation)
• Second Payment Services Directive (PSD2) implementation

Lithuania has implemented EU Second Payment Services Directive (PSD 2) which allows Payment Initiation Service (PIS) – initiation of a payment order from the client’s bank account at the request of the client from the payment account held at another payment service provider (bank). PSD 2 also allows the Payment Institution to provide Account Information Service (AIS) accessing consolidated information from the client accounts held by other payment service providers (banks) and have an overall view of client financial information.

One license for all Europe. Passporting of the license in EU/EEA area

European Union Payment Services Directive (PSD) provides the legal background to the European single market for payments. Payment Institution licensing in one of the member states within the EU/EEA opens up business opportunities to act and provide services in all other EU/EEA countries, enjoy benefits of the Common Market and advantages of the Single Euro Payments Area (SEPA).

SEPA has 450 million consumers and over 20 million businesses making and receiving payments in Euro under the same basic conditions, rights and obligations, regardless of their location in Europe. SEPA allows arranging electronic credit transfers and direct debits in Euro at a low cost just as easy as in the home country. Pan-European payment license issued in Lithuania provides a significant competitive advantage and opens up the European financial market at significantly lower incorporation and operational costs.

Lithuania and primarily its capital Vilnius became a new hub for the FinTech companies focused on international financial markets. Favourable regulatory and tax environment, excellent infrastructure, fastest internet and quality talent pool makes Lithuania and primarily its capital Vilnius attractive to large international financial institutions as well as FinTech start-ups.

All payment service providers (PSPs) including payment and electronic money institution allowed to connect SEPA directly without intermediary commercial banks. CENTROlink allows processing of wide range of SEPA schemes including credit transfers, direct debit transfers and instant payments at low cost under the same terms and conditions as commercial banks.

Why CENTROlink:

– Availability 24/7/365.

– Low cost. SEPA Credit Transfer (SCT) and SCT Inst fees – EUR 0.01 – 0.024. SEPA Direct Debit (SDD) fees – EUR 0.08.

– Linked with the European payment systems STEP2, RT1 and TIPS without any additional expense or integration.

– No limitation on payment values, number of transactions and number of issued IBAN accounts.

– No credit risk. Own and client funds safeguarded, and payments made through the Central Bank. It eliminates the risk and costs usually associated with the funds safeguarding with commercial banks.

– Individual client IBAN account generation. Individual client IBAN account generation and opening in the own system. No assistance from the commercial banks needed.

– Proxy Lookup Service. Payment initiation using payee’s mobile phone number linked to IBAN account.

Reasons why Lithuania is the top jurisdiction for Payment Institution licensing