A licensed payment institution is a perfect solution for financial service providers, FinTech companies, and start-ups processing payments and money transfers of private individuals, companies, and internet merchants. Payment institution license UK is the most popular license providing payment solutions for internet shops all around the UK. 

Fast and easy licensing. Business-friendly regulation

The Bank combines the functions of a central bank and the financial supervisory authority (regulator). Business-oriented regulatory behavior and significantly lower finance institution incorporation, licensing, and maintenance costs make the preferred jurisdiction for finance business people worldwide.

Services provided by the Payment Institution License

  • 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 execution of credit transfers, including standing orders;
  • Execution of payment transactions where a credit line covers the funds 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 execution of credit transfers, including standing orders;
  • Issuing and acquiring payment instruments;
  • Money transfers;
  • Execution of payment transactions where the consent of the payer to execute a payment transaction is given utilizing any telecommunications terminal equipment, digital or IT devise, and the payment is made to the telecommunications network or IT system operator, acting only as an intermediary between the supplier of the goods or services and the payment service user;
  • Payment Initiation Service (PSD2 implementation).
  • Account Information Service (PSD2 implementation).

A payment institution license UK provides a significant competitive advantage and opens the UK financial market at significantly lower incorporation and operational costs. In addition, a favorable regulatory and tax environment, excellent infrastructure, fastest internet, and quality talent pool make it attractive to large international financial institutions and FinTech start-ups.

What are the benefits for consumers?

Consumers who have been using non-banks for payment services can now feel certain that their provider has been duly authorized and registered and is being supervised by the financial authorities in their home country.

Payment institutions must follow EU regulations, including anti-money laundering, fraud prevention, terrorist financing, etc. Furthermore, as an international payment service provider, they must operate by all applicable laws and regulations. This provides customers of payment institutions with certainty that their provider offers trustworthy solutions and that their payments are processed safely and securely.

Consumers benefit from the availability of “passported” cross-border services which are harmonized and standardized. Payment institutions have also developed innovative solutions such as cards and pre-paid products. In addition, they are offering online and mobile payment solutions, e-wallets, and international remittance services to a greater degree than traditional banks.

As a result of greater competition in the market among banks, payment institutions, and e-money issuers, consumer choice of provider increases. Consumers are likely to demand higher standards of quality, greater convenience in making payments, and faster turnaround times.

Payment institution status extends a greater level of security to a firm’s clients. Obtaining a license as a payment institution means the regulator is satisfied that the authorized payment institution has met the requirements.