Regulated activity

Execution of payment transactions

PSD2 Annex I (3) covers credit transfers, direct debits and card payments executed from a payment account, and licenses the activity to a PI, an EMI or a bank. A PI needs initial capital of between EUR 20,000 and EUR 125,000. The resulting authorisation passports throughout the EEA.

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✓
Bermuda: Banking Licence / Deposit Company Licence / Restricted Banking Licence✓
Cayman Islands: Bank Licence✓
Czech Republic: Commercial Bank licence✓
Czech Republic: Small-scale Electronic Money Issuer authorisation✓
Czech Republic: Electronic Money Institution licence✓
Czech Republic: Small-scale Payment Service Provider authorisation✓
Czech Republic: Payment Institution licence✓
Dubai International Financial Centre (DIFC): Bank licence✓
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: Payment institution licence✓
Germany: CRR)✓
Germany: Electronic money institution licence✓
Germany: Payment institution licence✓
Ireland: Banking Licence✓
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✓
Netherlands: Electronic money institution licence✓
Netherlands: Payment institution licence✓
Poland: Commercial Bank licence✓
Poland: Electronic Money Institution licence✓
Poland: National Payment Institution licence✓
Poland: Small Payment Institution registration✓
Singapore: Banking Licence✓
Singapore: Major Payment Institution Licence✓
Singapore: Standard Payment Institution Licence✓
Slovakia: Banking licence✓
Slovakia: Electronic money institution licence✓
Slovakia: Payment institution licence✓
Spain: Commercial bank licence✓
Spain: Electronic money institution authorization✓
Spain: Payment institution authorization✓
Switzerland: FinTech licence (Persons✓
Switzerland: Banking licence✓
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?

PIs and EMIs have to safeguard any client funds they receive to execute a transaction. That means keeping the money in a segregated account with an authorised credit institution, or in secure, liquid assets, so customers are insulated if the institution fails.

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

Payment execution runs through a payment account held in the payer's or payee's name. Money remittance skips the account altogether. It moves funds between parties without opening or maintaining one.

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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