# Execution of payment transactions

Source page: https://protegra.io/licensing/activities/payment-execution/

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.

## Definition

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

- PSD2, Annex I (3): [official text](https://eur-lex.europa.eu/eli/dir/2015/2366/oj)

## Which licence you need

Licence families that typically permit this activity:

- [Payment institution (PI)](https://protegra.io/licensing/licences/payment-institution/)
- [Electronic money institution (EMI)](https://protegra.io/licensing/licences/emi/)
- [Bank / credit institution](https://protegra.io/licensing/licences/bank/)

- [Bank · Abu Dhabi Global Market (ADGM)Financial Services Permission for Accepting Deposits (Category 1 Commercial Bank)FSRA](https://protegra.io/licensing/licences/bank/adgm/)
- [Bank · BermudaBanking Licence / Deposit Company Licence / Restricted Banking Licence (Banks and Deposit Companies Act 1999)BMA](https://protegra.io/licensing/licences/bank/bermuda/)
- [Bank · Cayman IslandsBank Licence (Category A and Category B) under the Banks and Trust Companies ActCIMA](https://protegra.io/licensing/licences/bank/cayman-islands/)
- [Bank · Czech RepublicCommercial Bank licence (bankovní licence)CNB](https://protegra.io/licensing/licences/bank/czech-republic/)
- [EMI · Czech RepublicSmall-scale Electronic Money Issuer authorisation (povolení k činnosti malého vydavatele elektronických peněz - VEPMR)CNB](https://protegra.io/licensing/licences/emi/czech-republic-small-scale/)
- [EMI · Czech RepublicElectronic Money Institution licence (povolení k činnosti instituce elektronických peněz)CNB](https://protegra.io/licensing/licences/emi/czech-republic/)
- [PI · Czech RepublicSmall-scale Payment Service Provider authorisation (povolení k činnosti poskytovatele platebních služeb malého rozsahu - PPSMR)CNB](https://protegra.io/licensing/licences/payment-institution/czech-republic-small-scale/)
- [PI · Czech RepublicPayment Institution licence (povolení k činnosti platební instituce)CNB](https://protegra.io/licensing/licences/payment-institution/czech-republic/)
- [Bank · Dubai International Financial Centre (DIFC)Financial Services Permission for Accepting Deposits or Providing Credit (Category 1 Commercial Bank)DFSA](https://protegra.io/licensing/licences/bank/difc/)
- [Bank · EstoniaCredit institution authorisation (bank)FI](https://protegra.io/licensing/licences/bank/estonia/)
- [EMI · EstoniaElectronic money institution operating with an exceptionFI](https://protegra.io/licensing/licences/emi/estonia-exception/)
- [EMI · EstoniaOperating licence as an electronic money institutionFI](https://protegra.io/licensing/licences/emi/estonia/)
- [PI · EstoniaPayment institution operating with an exceptionFI](https://protegra.io/licensing/licences/payment-institution/estonia-exception/)
- [PI · EstoniaOperating licence as a payment institutionFI](https://protegra.io/licensing/licences/payment-institution/estonia/)
- [Bank · GeorgiaCommercial bank licenceNBG](https://protegra.io/licensing/licences/bank/georgia/)
- [PI · GeorgiaRegistration as a Payment Service Provider (PSP) with the National Bank of GeorgiaNBG](https://protegra.io/licensing/licences/payment-institution/georgia/)
- [Bank · GermanyCredit institution licence (Erlaubnis zum Betreiben von Bankgeschäften nach § 32 KWG / CRR)BaFin](https://protegra.io/licensing/licences/bank/germany/)
- [EMI · GermanyElectronic money institution licence (Erlaubnis für das E-Geld-Geschäft nach § 11 ZAG)BaFin](https://protegra.io/licensing/licences/emi/germany/)
- [PI · GermanyPayment institution licence (Erlaubnis zur Erbringung von Zahlungsdiensten nach § 10 ZAG)BaFin](https://protegra.io/licensing/licences/payment-institution/germany/)
- [Bank · IrelandBanking Licence (Section 9 Central Bank Act 1971)CBI](https://protegra.io/licensing/licences/bank/ireland/)
- [EMI · IrelandSmall Electronic Money Institution RegistrationCBI](https://protegra.io/licensing/licences/emi/ireland-small/)
- [EMI · IrelandElectronic Money Institution AuthorisationCBI](https://protegra.io/licensing/licences/emi/ireland/)
- [PI · IrelandPayment Institution AuthorisationCBI](https://protegra.io/licensing/licences/payment-institution/ireland/)
- [Bank · LatviaCredit institution licence (bank)LB](https://protegra.io/licensing/licences/bank/latvia/)
- [EMI · LatviaRegistered electronic money institutionLB](https://protegra.io/licensing/licences/emi/latvia-registered/)
- [EMI · LatviaAuthorised electronic money institution licenceLB](https://protegra.io/licensing/licences/emi/latvia/)
- [PI · LatviaRegistered payment institutionLB](https://protegra.io/licensing/licences/payment-institution/latvia-registered/)
- [PI · LatviaAuthorised payment institution licenceLB](https://protegra.io/licensing/licences/payment-institution/latvia/)
- [Bank · LithuaniaSpecialised bank licenceLB](https://protegra.io/licensing/licences/bank/lithuania-specialised/)
- [Bank · LithuaniaBank licenceLB](https://protegra.io/licensing/licences/bank/lithuania/)
- [EMI · LithuaniaElectronic money institution licence for restricted activityLB](https://protegra.io/licensing/licences/emi/lithuania-restricted/)
- [EMI · LithuaniaElectronic money institution licence for non-limited activityLB · capital EUR 350,000](https://protegra.io/licensing/licences/emi/lithuania/)
- [PI · LithuaniaPayment institution licence for restricted activityLB](https://protegra.io/licensing/licences/payment-institution/lithuania-restricted/)
- [PI · LithuaniaPayment institution licenceLB](https://protegra.io/licensing/licences/payment-institution/lithuania/)
- [Bank · LuxembourgCredit institution authorisationCSSF](https://protegra.io/licensing/licences/bank/luxembourg/)
- [EMI · LuxembourgElectronic money institution authorisationCSSF](https://protegra.io/licensing/licences/emi/luxembourg/)
- [PI · LuxembourgPayment institution authorisationCSSF](https://protegra.io/licensing/licences/payment-institution/luxembourg/)
- [Bank · MaltaCredit institution licenceMFSA](https://protegra.io/licensing/licences/bank/malta/)
- [EMI · MaltaElectronic money institution licenceMFSA](https://protegra.io/licensing/licences/emi/malta/)
- [PI · MaltaPayment institution licenceMFSA](https://protegra.io/licensing/licences/payment-institution/malta/)
- [Bank · NetherlandsBank licence (Vergunning bank / kredietinstelling)DNB](https://protegra.io/licensing/licences/bank/netherlands/)
- [EMI · NetherlandsExempt electronic money institution registration (Vrijstelling elektronischgeldinstelling)DNB](https://protegra.io/licensing/licences/emi/netherlands-exempt/)
- [EMI · NetherlandsElectronic money institution licence (Vergunning elektronischgeldinstelling)DNB](https://protegra.io/licensing/licences/emi/netherlands/)
- [PI · NetherlandsExempt payment service provider registration (Vrijstelling betaaldienstverlener)DNB](https://protegra.io/licensing/licences/payment-institution/netherlands-exempt/)
- [PI · NetherlandsPayment institution licence (Vergunning betaalinstelling)DNB](https://protegra.io/licensing/licences/payment-institution/netherlands/)
- [Bank · PolandCommercial Bank licence (bank krajowy w formie spółki akcyjnej)KNF](https://protegra.io/licensing/licences/bank/poland/)
- [EMI · PolandElectronic Money Institution licence (krajowa instytucja pieniądza elektronicznego - KIO)KNF](https://protegra.io/licensing/licences/emi/poland/)
- [PI · PolandNational Payment Institution licence (krajowa instytucja płatnicza - KIP)KNF](https://protegra.io/licensing/licences/payment-institution/poland-kip/)
- [PI · PolandSmall Payment Institution registration (mała instytucja płatnicza - MIP)KNF](https://protegra.io/licensing/licences/payment-institution/poland-mip/)
- [Bank · SingaporeBanking Licence (Full Bank, Wholesale Bank, Digital Bank)MAS](https://protegra.io/licensing/licences/bank/singapore/)
- [PI · SingaporeMajor Payment Institution LicenceMAS](https://protegra.io/licensing/licences/payment-institution/singapore-mpi/)
- [PI · SingaporeStandard Payment Institution LicenceMAS](https://protegra.io/licensing/licences/payment-institution/singapore-spi/)
- [Bank · SlovakiaBanking licence (bankové povolenie)NBS](https://protegra.io/licensing/licences/bank/slovakia/)
- [EMI · SlovakiaElectronic money institution licence (povolenie na vydávanie a správu elektronických peňazí bez obmedzenia rozsahu)NBS](https://protegra.io/licensing/licences/emi/slovakia/)
- [PI · SlovakiaPayment institution licence (povolenie na poskytovanie platobných služieb bez obmedzenia rozsahu)NBS](https://protegra.io/licensing/licences/payment-institution/slovakia/)
- [Bank · SpainEntidad de crédito (Banco) / Commercial bank licenceBdE](https://protegra.io/licensing/licences/bank/spain/)
- [EMI · SpainEntidad de dinero electrónico (EDE) / Electronic money institution authorizationBdE](https://protegra.io/licensing/licences/emi/spain/)
- [PI · SpainEntidad de pago (EP) / Payment institution authorizationBdE](https://protegra.io/licensing/licences/payment-institution/spain/)
- [Bank · SwitzerlandFinTech licence (Persons pursuant to Article 1b Banking Act / FinTech-Bewilligung nach Art. 1b BankG)FINMA](https://protegra.io/licensing/licences/bank/switzerland-fintech/)
- [Bank · SwitzerlandBanking licence (Bankbewilligung nach Art. 3 BankG)FINMA](https://protegra.io/licensing/licences/bank/switzerland/)
- [Bank · United Arab EmiratesCommercial Bank LicenceCBUAE](https://protegra.io/licensing/licences/bank/uae-commercial/)
- [PI · United Arab EmiratesRetail Payment Services Licence (Categories I to IV)CBUAE](https://protegra.io/licensing/licences/payment-institution/uae-rps/)
- [EMI · United KingdomSmall Electronic Money Institution (SEMI) RegistrationFCA](https://protegra.io/licensing/licences/emi/united-kingdom-semi/)
- [EMI · United KingdomAuthorised Electronic Money Institution (AEMI)FCA](https://protegra.io/licensing/licences/emi/united-kingdom/)
- [PI · United KingdomSmall Payment Institution (SPI) RegistrationFCA](https://protegra.io/licensing/licences/payment-institution/united-kingdom-spi/)
- [PI · United KingdomAuthorised Payment Institution (API)FCA](https://protegra.io/licensing/licences/payment-institution/united-kingdom/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Abu Dhabi Global Market (ADGM): Financial Services Permission for Accepting Deposits (Category 1 Commercial Bank)](https://protegra.io/licensing/licences/bank/adgm/) | | ✓ |
| [Bermuda: Banking Licence / Deposit Company Licence / Restricted Banking Licence (Banks and Deposit Companies Act 1999)](https://protegra.io/licensing/licences/bank/bermuda/) | | ✓ |
| [Cayman Islands: Bank Licence (Category A and Category B) under the Banks and Trust Companies Act](https://protegra.io/licensing/licences/bank/cayman-islands/) | | ✓ |
| [Czech Republic: Commercial Bank licence (bankovní licence)](https://protegra.io/licensing/licences/bank/czech-republic/) | ✓ | |
| [Czech Republic: Small-scale Electronic Money Issuer authorisation (povolení k činnosti malého vydavatele elektronických peněz - VEPMR)](https://protegra.io/licensing/licences/emi/czech-republic-small-scale/) | | ✓ |
| [Czech Republic: Electronic Money Institution licence (povolení k činnosti instituce elektronických peněz)](https://protegra.io/licensing/licences/emi/czech-republic/) | ✓ | |
| [Czech Republic: Small-scale Payment Service Provider authorisation (povolení k činnosti poskytovatele platebních služeb malého rozsahu - PPSMR)](https://protegra.io/licensing/licences/payment-institution/czech-republic-small-scale/) | | ✓ |
| [Czech Republic: Payment Institution licence (povolení k činnosti platební instituce)](https://protegra.io/licensing/licences/payment-institution/czech-republic/) | ✓ | |
| [Dubai International Financial Centre (DIFC): Financial Services Permission for Accepting Deposits or Providing Credit (Category 1 Commercial Bank)](https://protegra.io/licensing/licences/bank/difc/) | | ✓ |
| [Estonia: Credit institution authorisation (bank)](https://protegra.io/licensing/licences/bank/estonia/) | ✓ | |
| [Estonia: Electronic money institution operating with an exception](https://protegra.io/licensing/licences/emi/estonia-exception/) | ✓ | |
| [Estonia: Operating licence as an electronic money institution](https://protegra.io/licensing/licences/emi/estonia/) | ✓ | |
| [Estonia: Payment institution operating with an exception](https://protegra.io/licensing/licences/payment-institution/estonia-exception/) | ✓ | |
| [Estonia: Operating licence as a payment institution](https://protegra.io/licensing/licences/payment-institution/estonia/) | ✓ | |
| [Georgia: Commercial bank licence](https://protegra.io/licensing/licences/bank/georgia/) | | ✓ |
| [Georgia: Registration as a Payment Service Provider (PSP) with the National Bank of Georgia](https://protegra.io/licensing/licences/payment-institution/georgia/) | | ✓ |
| [Germany: Credit institution licence (Erlaubnis zum Betreiben von Bankgeschäften nach § 32 KWG / CRR)](https://protegra.io/licensing/licences/bank/germany/) | ✓ | |
| [Germany: Electronic money institution licence (Erlaubnis für das E-Geld-Geschäft nach § 11 ZAG)](https://protegra.io/licensing/licences/emi/germany/) | ✓ | |
| [Germany: Payment institution licence (Erlaubnis zur Erbringung von Zahlungsdiensten nach § 10 ZAG)](https://protegra.io/licensing/licences/payment-institution/germany/) | ✓ | |
| [Ireland: Banking Licence (Section 9 Central Bank Act 1971)](https://protegra.io/licensing/licences/bank/ireland/) | ✓ | |
| [Ireland: Small Electronic Money Institution Registration](https://protegra.io/licensing/licences/emi/ireland-small/) | | ✓ |
| [Ireland: Electronic Money Institution Authorisation](https://protegra.io/licensing/licences/emi/ireland/) | ✓ | |
| [Ireland: Payment Institution Authorisation](https://protegra.io/licensing/licences/payment-institution/ireland/) | ✓ | |
| [Latvia: Credit institution licence (bank)](https://protegra.io/licensing/licences/bank/latvia/) | ✓ | |
| [Latvia: Registered electronic money institution](https://protegra.io/licensing/licences/emi/latvia-registered/) | ✓ | |
| [Latvia: Authorised electronic money institution licence](https://protegra.io/licensing/licences/emi/latvia/) | ✓ | |
| [Latvia: Registered payment institution](https://protegra.io/licensing/licences/payment-institution/latvia-registered/) | ✓ | |
| [Latvia: Authorised payment institution licence](https://protegra.io/licensing/licences/payment-institution/latvia/) | ✓ | |
| [Lithuania: Specialised bank licence](https://protegra.io/licensing/licences/bank/lithuania-specialised/) | ✓ | |
| [Lithuania: Bank licence](https://protegra.io/licensing/licences/bank/lithuania/) | ✓ | |
| [Lithuania: Electronic money institution licence for restricted activity](https://protegra.io/licensing/licences/emi/lithuania-restricted/) | | ✓ |
| [Lithuania: Electronic money institution licence for non-limited activity](https://protegra.io/licensing/licences/emi/lithuania/) | ✓ | |
| [Lithuania: Payment institution licence for restricted activity](https://protegra.io/licensing/licences/payment-institution/lithuania-restricted/) | | ✓ |
| [Lithuania: Payment institution licence](https://protegra.io/licensing/licences/payment-institution/lithuania/) | ✓ | |
| [Luxembourg: Credit institution authorisation](https://protegra.io/licensing/licences/bank/luxembourg/) | ✓ | |
| [Luxembourg: Electronic money institution authorisation](https://protegra.io/licensing/licences/emi/luxembourg/) | ✓ | |
| [Luxembourg: Payment institution authorisation](https://protegra.io/licensing/licences/payment-institution/luxembourg/) | ✓ | |
| [Malta: Credit institution licence](https://protegra.io/licensing/licences/bank/malta/) | ✓ | |
| [Malta: Electronic money institution licence](https://protegra.io/licensing/licences/emi/malta/) | ✓ | |
| [Malta: Payment institution licence](https://protegra.io/licensing/licences/payment-institution/malta/) | ✓ | |
| [Netherlands: Bank licence (Vergunning bank / kredietinstelling)](https://protegra.io/licensing/licences/bank/netherlands/) | ✓ | |
| [Netherlands: Exempt electronic money institution registration (Vrijstelling elektronischgeldinstelling)](https://protegra.io/licensing/licences/emi/netherlands-exempt/) | | ✓ |
| [Netherlands: Electronic money institution licence (Vergunning elektronischgeldinstelling)](https://protegra.io/licensing/licences/emi/netherlands/) | ✓ | |
| [Netherlands: Exempt payment service provider registration (Vrijstelling betaaldienstverlener)](https://protegra.io/licensing/licences/payment-institution/netherlands-exempt/) | | ✓ |
| [Netherlands: Payment institution licence (Vergunning betaalinstelling)](https://protegra.io/licensing/licences/payment-institution/netherlands/) | ✓ | |
| [Poland: Commercial Bank licence (bank krajowy w formie spółki akcyjnej)](https://protegra.io/licensing/licences/bank/poland/) | ✓ | |
| [Poland: Electronic Money Institution licence (krajowa instytucja pieniądza elektronicznego - KIO)](https://protegra.io/licensing/licences/emi/poland/) | ✓ | |
| [Poland: National Payment Institution licence (krajowa instytucja płatnicza - KIP)](https://protegra.io/licensing/licences/payment-institution/poland-kip/) | | ✓ |
| [Poland: Small Payment Institution registration (mała instytucja płatnicza - MIP)](https://protegra.io/licensing/licences/payment-institution/poland-mip/) | | ✓ |
| [Singapore: Banking Licence (Full Bank, Wholesale Bank, Digital Bank)](https://protegra.io/licensing/licences/bank/singapore/) | | ✓ |
| [Singapore: Major Payment Institution Licence](https://protegra.io/licensing/licences/payment-institution/singapore-mpi/) | | ✓ |
| [Singapore: Standard Payment Institution Licence](https://protegra.io/licensing/licences/payment-institution/singapore-spi/) | | ✓ |
| [Slovakia: Banking licence (bankové povolenie)](https://protegra.io/licensing/licences/bank/slovakia/) | ✓ | |
| [Slovakia: Electronic money institution licence (povolenie na vydávanie a správu elektronických peňazí bez obmedzenia rozsahu)](https://protegra.io/licensing/licences/emi/slovakia/) | ✓ | |
| [Slovakia: Payment institution licence (povolenie na poskytovanie platobných služieb bez obmedzenia rozsahu)](https://protegra.io/licensing/licences/payment-institution/slovakia/) | ✓ | |
| [Spain: Entidad de crédito (Banco) / Commercial bank licence](https://protegra.io/licensing/licences/bank/spain/) | ✓ | |
| [Spain: Entidad de dinero electrónico (EDE) / Electronic money institution authorization](https://protegra.io/licensing/licences/emi/spain/) | ✓ | |
| [Spain: Entidad de pago (EP) / Payment institution authorization](https://protegra.io/licensing/licences/payment-institution/spain/) | ✓ | |
| [Switzerland: FinTech licence (Persons pursuant to Article 1b Banking Act / FinTech-Bewilligung nach Art. 1b BankG)](https://protegra.io/licensing/licences/bank/switzerland-fintech/) | | ✓ |
| [Switzerland: Banking licence (Bankbewilligung nach Art. 3 BankG)](https://protegra.io/licensing/licences/bank/switzerland/) | | ✓ |
| [United Arab Emirates: Commercial Bank Licence](https://protegra.io/licensing/licences/bank/uae-commercial/) | | ✓ |
| [United Arab Emirates: Retail Payment Services Licence (Categories I to IV)](https://protegra.io/licensing/licences/payment-institution/uae-rps/) | | ✓ |
| [United Kingdom: Small Electronic Money Institution (SEMI) Registration](https://protegra.io/licensing/licences/emi/united-kingdom-semi/) | | ✓ |
| [United Kingdom: Authorised Electronic Money Institution (AEMI)](https://protegra.io/licensing/licences/emi/united-kingdom/) | | ✓ |
| [United Kingdom: Small Payment Institution (SPI) Registration](https://protegra.io/licensing/licences/payment-institution/united-kingdom-spi/) | | ✓ |
| [United Kingdom: Authorised Payment Institution (API)](https://protegra.io/licensing/licences/payment-institution/united-kingdom/) | | ✓ |

## 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.

## Sources

1. [PSD2 Annex I (3)](https://eur-lex.europa.eu/eli/dir/2015/2366/oj): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.