Estonia payment service provider

An Estonia PSP license is essential to provide electronic payment services within the country. As Estonia is a member of the EU, any licenses obtained from the country may also be used to provide payment services across the EU subject to completion of local registration requirements in the other country. With its innovative residency program, Estonia is one of the most business-friendly jurisdictions in Europe.

Estonia Payment Service Provider (PSP) License

 

A license for an Estonia Payment Service Provider (PSP) is issued by Finantsinspektsioon, the Financial Services Regulator of Estonia under the Payment Institutions and E-money Institutions Act. This act modified the existing legislation on the subject and updated it according to the latest directive of the European Union (EU).

An Estonia PSP license is essential to provide electronic payment services within the country. As Estonia is a member of the EU, any licenses obtained from the country may also be used to provide payment services across the EU subject to completion of local registration requirements in the other country. With its innovative residency program, Estonia is one of the most business-friendly jurisdictions in Europe.

Estonia PSP License Costs

The fee for an application for a license varies on a case to case basis but is considered to be amongst the most cost-effective in the European Union. A license is also generally granted within 6 months of submission of a fully completed application.

Empire Global has a team of experienced professionals who will assist you through the entire process of Estonia PSP License application including assistance in the preparation of documents, submission of application and responding to any queries from the Finantsinspektsioon. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for an Estonia PSP License.

How can I get an Estonia PSP License?

An application for an Estonia Payment Service Provider has to be made to the Finantsinspektsioon. The licenses for an Estonia Payment Service Provider (PSP) will be granted subject to the applicant fulfilling the requirements set by the Finantsinspektsioon and the Act.

What is Estonia PSP License Requirement?

An application for an Estonia PSP License is a well drawn out process and it is highly recommended that you obtain the services of an Estonia PSP attorney for the process. The process of application is designed to evaluate if you are competent to carry on the financial service business mentioned in your application based on your resources and can meet obligations.

The documents required for an Estonian PSP license as stated by the Finantsinspektsioon are as follows:

  • A copy of the statutes for a business that is operating, any decision by the general meeting to amend the statutes, and the amended text of the statutes;
  • A notarized copy of the foundation contractor decision for a business being founded;
  • Documentation proving the existence of share or equity capital paid in or to be paid in;
  • An operating plan describing above all the planned payment or e-money services;
  • A business plan that meets the requirements of Payment Institutions Act;
  • The initial balance of the applicant and a review of income and expenses or the balance and profit report as at the end of the month prior to the application for an operating business, and annual reports for the past three years if they exist;
  • A description of how the general requirements of Payment Institutions Act for holding client assets and client protection will be applied;
  • The internal rules and internal bookkeeping rules in accordance with Payment Institutions Act or proposals for them;
  • Data on the information technology and other technological equipment and systems, security systems, and control mechanisms and systems that will be needed for the provision of the planned services.
  • A description of internal controls and measures to ensure compliance with anti-money laundering and terrorist financing obligations and obligations for information about the payer to be sent when transferring money;
  • A description of the organizational structure of the applicant, covering where necessary the use of agents or branches or the procedures for transferring services, and its participation in domestic and international payment systems;
  • A list of the shareholders of the applicant showing the name of each shareholder or member, their registry code or ID code, or date of birth if they have none, and details on the share or equity holdings of each shareholder and the voting weight given to them;
  • The data listed in the Payment Institutions Act on the major shareholders of the applicant;
  • Information on the managers or the applicant, including their first and family names, personal ID codes or date of birth if they have no ID code, place of residence, description of education, full list of jobs and positions held, and for members of the management board a list of their areas of responsibility, together with any documentation that the applicant considers relevant for demonstrating their trustworthiness and compliance with the requirements;
  • Data on any business that the applicant or its management holds more than 20% of, where those data include the size of its equity, a list of its areas of activity, and the size of the holding of the applicant and each manager;
  • Information on the auditor and internal auditor of the applicant, giving their names, places of residence or locations of operations, and personal ID codes or dates of birth or registry code if there is no ID code;
  • Documentation certifying the value of own funds for a business that is already operating, together with the auditor’s report;
  • The technical, economic and legal principles approved by Eesti Pank for the functioning of the payment system and the draft of the rules organizing the work of this system if the applicant intends to engage in managing payment systems

In addition to the above requirements, the Applicant will have to maintain its own funds as per the formula provided in the Act.

Estonia payment service

Estonia Payment Service Provider License