# Payment initiation services

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

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.

## Definition

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

- PSD2, Annex I (7): [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/)

- [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/)
- [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/)
- [PI · GeorgiaRegistration as a Payment Service Provider (PSP) with the National Bank of GeorgiaNBG](https://protegra.io/licensing/licences/payment-institution/georgia/)
- [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/)
- [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/)
- [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/)
- [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/)
- [EMI · LuxembourgElectronic money institution authorisationCSSF](https://protegra.io/licensing/licences/emi/luxembourg/)
- [PI · LuxembourgPayment institution authorisationCSSF](https://protegra.io/licensing/licences/payment-institution/luxembourg/)
- [EMI · MaltaElectronic money institution licenceMFSA](https://protegra.io/licensing/licences/emi/malta/)
- [PI · MaltaPayment institution licenceMFSA](https://protegra.io/licensing/licences/payment-institution/malta/)
- [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/)
- [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/)
- [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/)
- [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/)
- [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/)
- [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 |
| --- | --- | --- |
| [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/) | ✓ | |
| [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: Registration as a Payment Service Provider (PSP) with the National Bank of Georgia](https://protegra.io/licensing/licences/payment-institution/georgia/) | | ✓ |
| [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: 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: 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: 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: Electronic money institution authorisation](https://protegra.io/licensing/licences/emi/luxembourg/) | ✓ | |
| [Luxembourg: Payment institution authorisation](https://protegra.io/licensing/licences/payment-institution/luxembourg/) | ✓ | |
| [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: 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: 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: 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: 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 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/) | ✓ | |
| [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

### 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.

## Sources

1. [PSD2 Annex I (7)](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.