Regulated activity

Payment initiation services

Initiating online payment orders directly from a customer's bank account requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (7). A dedicated payment initiation service provider (PISP) requires initial capital of EUR 50,000, professional indemnity insurance and benefits from passporting rights throughout the EEA.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Payment initiation services: regulated activityPSD2

Definition

Initiating a payment order at the user's request from an account held with another provider, as in open banking.

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where payment initiation services can be licensedCzech RepublicEstoniaGeorgiaGermanyIrelandLatviaLithuaniaLuxembourgNetherlandsPolandSlovakiaSpainUnited Arab EmiratesUnited KingdomMaltaSingapore
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
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)✓
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: Registration as a Payment Service Provider (PSP) with the National Bank of Georgia✓
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: Small Electronic Money Institution Registration✓
Ireland: Electronic Money Institution Authorisation✓
Ireland: Payment Institution Authorisation✓
Latvia: Registered electronic money institution✓
Latvia: Authorised electronic money institution licence✓
Latvia: Registered payment institution✓
Latvia: Authorised payment institution 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: Electronic money institution authorisation✓
Luxembourg: Payment institution authorisation✓
Malta: Electronic money institution licence✓
Malta: Payment institution licence✓
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: 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: Major Payment Institution Licence✓
Singapore: Standard Payment Institution Licence✓
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 dinero electrónico (EDE) / Electronic money institution authorization✓
Spain: Entidad de pago (EP) / Payment institution authorization✓
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

Does a payment initiation service provider hold customer funds?

No, a PISP initiates transfers directly between the payer's bank account and the payee's account. Because PISPs never hold, settle or safeguard client funds during the transaction lifecycle, they face lower initial capital requirements than full payment institutions.

How do banks provide access to payment initiation services?

Under PSD2 open banking rules, credit institutions must provide dedicated application programming interfaces (APIs) or modified customer interfaces. These allow authorised PISPs to access account payment functionality securely upon explicit consent from the account holder.

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 (7) · retrieved 2026-09-24

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