A Pan-European PSP license acquired in any EU member state grants substantial advantages over competitors and opens up the EU monetary market at lower running expenses. PSP license makes eligible the delivery of an extensive scope of services to clients from the bloc without red tape.
PSP is the ideal solution for commercial entities and private consumers. Services of PSPs are the most popular amongst online stores and online retailers throughout Europe due to the ease of transactions. The EU 2nd Payment Services Directive (PSD2) that replaced the initial PSD implemented in 2007 shapes the legal ground for the payment industry in all EU/EEA area and SEPA.
Speedy and easy PSP authorization
Each PSP must obtain a PSP license to operate. Under the applicable law statements, the regulatory agencies must be provided by PSPs with a detailed operational plan covering the next 3 years, financial predictions, a risk management strategy, and appropriate AML and CTF rules. Requirements also necessitate proof of equity capital – from EUR 20,000 to EUR 350,000.
The authorizing procedure is governed by the PSP laws of a particular country or region. For instance, PSD2 governs PSP licensing in the EU, FCA governs in the UK, and PSA governs in Singapore. As an option, investors that want to speed up time-consuming authorizing procedures may consider ready-made PSP for sale.
A range of jurisdictions demonstrates a business-friendly regulative attitude and soft opening and running expenses for companies, making them preferred jurisdictions for global entities dealing with investments, monetary issues, and crypto projects. For example, the Bank of Lithuania effected regulative “Sandbox” in the Lithuanian Republic with the purpose to attract businesses coming to the EU market. Accordingly, many investors choose the option to buy a PSP license in these regions.
One license for the whole bloc. Passporting in the EU/EEA area
The PSD serves as the legal base for the functioning of payment and payment-related schemes that contribute to the creation of a single payments market in Europe. Getting a PSP license or buying a company with a PSP license in one of the EU/EEA states gives businesses permission to expand their activities in all other EU/EEA, benefit from the Common Market, and take advantage of the SEPA. Regardless of where they are in Europe, over 20,000,000 businesses and 450,000,000 customers use SEPA to send and receive payments in euros under identical fundamental terms, rights, and obligations. SEPA makes it possible to set up low-cost e-credit transfers and direct debits in euros just as easily as in the country of origin.
Subject to the country where you want to open your business, you can consider the opportunity to buy a payment service provider license. To find out how we can help you launch and expand your company, please get in touch with us.
