Cash placement on a payment account
Enabling cash deposits onto a payment account and managing associated account operations requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (1). Initial capital for a PI varies from EUR 20,000 to EUR 125,000. Authorised institutions can passport operations across the EEA.
Definition
Services enabling cash to be placed on a payment account, and the operations required to run that account.
- PSD2, Annex I (1): official text
Which licence you need
Licence families that typically permit this activity:
Where it can be licensed
| EU/EEA passport | Domestic | |
|---|---|---|
| Lithuania: Electronic money institution licence for non-limited activity | ✓ |
Frequently asked questions
Can a payment institution operate cash deposit ATMs or teller counters?
Yes, licensed payment institutions authorised for cash placement may operate physical cash counters, automated deposit machines or partnered retail deposit networks. The institution must maintain strict anti-money-laundering controls and customer identification procedures for all cash intake.
How does cash placement differ from accepting repayable deposits?
Cash placed on a payment account with a payment institution or EMI must be used strictly for executing payment transactions and cannot earn interest. Only licensed credit institutions (banks) may accept repayable deposits from the public to fund proprietary lending.
Sources
- PSD2 Annex I (1) · retrieved 2026-09-24
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