Regulated activity

Execution of payment transactions

Executing credit transfers, direct debits and card payments from a payment account requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (3). PIs require initial capital between EUR 20,000 and EUR 125,000. Authorised payment providers benefit from passporting rights throughout the European Economic Area.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Execution of payment transactions: regulated activityPSD2

Definition

Executing direct debits, card payments and credit transfers, including standing orders, from a payment account.

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where execution of payment transactions can be licensedCzech RepublicEstoniaGeorgiaGermanyIrelandLatviaLithuaniaLuxembourgNetherlandsPolandSlovakiaSpainSwitzerlandUnited Arab EmiratesUnited KingdomAbu Dhabi Global Market (ADGM)BermudaCayman IslandsDubai International Financial Centre (DIFC)MaltaSingapore
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
Abu Dhabi Global Market (ADGM): Financial Services Permission for Accepting Deposits (Category 1 Commercial Bank)✓
Bermuda: Banking Licence / Deposit Company Licence / Restricted Banking Licence (Banks and Deposit Companies Act 1999)✓
Cayman Islands: Bank Licence (Category A and Category B) under the Banks and Trust Companies Act✓
Czech Republic: Commercial Bank licence (bankovní licence)✓
Czech Republic: Small-scale Electronic Money Issuer authorisation (povolení k činnosti malého vydavatele elektronických peněz - VEPMR)✓
Czech Republic: Electronic Money Institution licence (povolení k činnosti instituce elektronických peněz)✓
Czech Republic: Small-scale Payment Service Provider authorisation (povolení k činnosti poskytovatele platebních služeb malého rozsahu - PPSMR)✓
Czech Republic: Payment Institution licence (povolení k činnosti platební instituce)✓
Dubai International Financial Centre (DIFC): Financial Services Permission for Accepting Deposits or Providing Credit (Category 1 Commercial Bank)✓
Estonia: Credit institution authorisation (bank)✓
Estonia: Electronic money institution operating with an exception✓
Estonia: Operating licence as an electronic money institution✓
Estonia: Payment institution operating with an exception✓
Estonia: Operating licence as a payment institution✓
Georgia: Commercial bank licence✓
Georgia: Registration as a Payment Service Provider (PSP) with the National Bank of Georgia✓
Germany: Credit institution licence (Erlaubnis zum Betreiben von Bankgeschäften nach § 32 KWG / CRR)✓
Germany: Electronic money institution licence (Erlaubnis für das E-Geld-Geschäft nach § 11 ZAG)✓
Germany: Payment institution licence (Erlaubnis zur Erbringung von Zahlungsdiensten nach § 10 ZAG)✓
Ireland: Banking Licence (Section 9 Central Bank Act 1971)✓
Ireland: Small Electronic Money Institution Registration✓
Ireland: Electronic Money Institution Authorisation✓
Ireland: Payment Institution Authorisation✓
Latvia: Credit institution licence (bank)✓
Latvia: Registered electronic money institution✓
Latvia: Authorised electronic money institution licence✓
Latvia: Registered payment institution✓
Latvia: Authorised payment institution licence✓
Lithuania: Specialised bank licence✓
Lithuania: Bank licence✓
Lithuania: Electronic money institution licence for restricted activity✓
Lithuania: Electronic money institution licence for non-limited activity✓
Lithuania: Payment institution licence for restricted activity✓
Lithuania: Payment institution licence✓
Luxembourg: Credit institution authorisation✓
Luxembourg: Electronic money institution authorisation✓
Luxembourg: Payment institution authorisation✓
Malta: Credit institution licence✓
Malta: Electronic money institution licence✓
Malta: Payment institution licence✓
Netherlands: Bank licence (Vergunning bank / kredietinstelling)✓
Netherlands: Exempt electronic money institution registration (Vrijstelling elektronischgeldinstelling)✓
Netherlands: Electronic money institution licence (Vergunning elektronischgeldinstelling)✓
Netherlands: Exempt payment service provider registration (Vrijstelling betaaldienstverlener)✓
Netherlands: Payment institution licence (Vergunning betaalinstelling)✓
Poland: Commercial Bank licence (bank krajowy w formie spółki akcyjnej)✓
Poland: Electronic Money Institution licence (krajowa instytucja pieniądza elektronicznego - KIO)✓
Poland: National Payment Institution licence (krajowa instytucja płatnicza - KIP)✓
Poland: Small Payment Institution registration (mała instytucja płatnicza - MIP)✓
Singapore: Banking Licence (Full Bank, Wholesale Bank, Digital Bank)✓
Singapore: Major Payment Institution Licence✓
Singapore: Standard Payment Institution Licence✓
Slovakia: Banking licence (bankové povolenie)✓
Slovakia: Electronic money institution licence (povolenie na vydávanie a správu elektronických peňazí bez obmedzenia rozsahu)✓
Slovakia: Payment institution licence (povolenie na poskytovanie platobných služieb bez obmedzenia rozsahu)✓
Spain: Entidad de crédito (Banco) / Commercial bank licence✓
Spain: Entidad de dinero electrónico (EDE) / Electronic money institution authorization✓
Spain: Entidad de pago (EP) / Payment institution authorization✓
Switzerland: FinTech licence (Persons pursuant to Article 1b Banking Act / FinTech-Bewilligung nach Art. 1b BankG)✓
Switzerland: Banking licence (Bankbewilligung nach Art. 3 BankG)✓
United Arab Emirates: Commercial Bank Licence✓
United Arab Emirates: Retail Payment Services Licence (Categories I to IV)✓
United Kingdom: Small Electronic Money Institution (SEMI) Registration✓
United Kingdom: Authorised Electronic Money Institution (AEMI)✓
United Kingdom: Small Payment Institution (SPI) Registration✓
United Kingdom: Authorised Payment Institution (API)✓

Frequently asked questions

What safeguarding rules apply to funds received for payment execution?

Payment institutions and EMIs must safeguard client funds received for transaction execution. Safeguarding requires holding funds in segregated accounts with an authorised credit institution or investing them in secure, liquid assets to insulate customers against insolvency risks.

What is the difference between execution of payment transactions and money remittance?

Payment execution requires holding or maintaining a payment account in the payer's or payee's name to process transactions. In contrast, money remittance moves funds between parties without opening or maintaining dedicated payment accounts.

Last verified 2026-09-24Author Danil Marmysh, Founder & CEO, ProtegraReviewed by Anastasia Sidorenkova, Head of Licensing, ProtegraReport an errorReference information, not legal advice.

Sources

  1. PSD2 Annex I (3) · retrieved 2026-09-24

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