Malta, a member of the European Union offers the opportunity to obtain a Malta Payment Service Provider (PSP) license which can be used to offer services in Malta and across the EU, based on compliance with the license conditions. The licenses are issued under the provisions of the Financial Institutions Rules and the Financial Institutions Act by the Malta Financial Services Authority. The definition for a payment service is quite wide under the law and includes most forms of payments that can be made electronically. A Malta Payment Service Provider (PSP) License can be applied by a Company registered in the country.

Malta Payment Service Provider (PSP) License

 

For a company that wants to provide the services mentioned above, the minimum initial capital requirement would depend on the services sought to be provided and can be a maximum of EUR 125,000. The application for a Malta Payment Service Provider (PSP) License has to be made to the Malta Financial Services Authority (MFSA) which will issue the license. At least two individuals who will operate the business of the Malta Payment Service Provider must be located in the country.

The next step is the preparation of documents such as the Application Form, Company incorporation documents, security policy, audited financial statements, operating manuals, Anti Money Laundering (AML) and Anti Terrorist Financing (ATF) guidelines, Business plans and any other documents sought by the MFSA. All individuals proposed as qualifying shareholders, controllers or nominated to key positions are also required to submit a personal questionnaire. This will be followed by the submission of the application to the MFSA with an application fee of EUR 3,500. The entire process of obtaining a Malta Payment Service Provider (PSP) License takes about 3-6 months after the submission of the completed application.

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

What Malta Payment Service Provider (PSP) license covers?

According to the provisions of the law, payment service covers the following:

  • Service as a result of which cash can be placed on a payment account as well as all necessary operations by the payment service provider to ensure that the payment service user can use the payment account
  • Service as a result of which cash can be withdrawn from a payment account as well as all necessary operations by the payment service provider to ensure that the payment service user can use the payment account
  • Execution of a payment transaction, including direct debit and also one-off direct debit execution of a payment transaction through a payment card or a similar device, execution of a credit transfer, also of a standing order. It also includes a transfer of funds to a payment account opened by the payment service provider of the payment service user or by another payment service provider
  • Execution of a payment transaction, including direct debit and also one-off direct debit, execution of a payment transaction through a payment card or a similar device, execution of a credit transfer, also of a standing order. It also includes a payment transaction where a credit line is applied to the funds available to the payment service user
  • Issuing and acquiring of a payment instrument
  • Money remittance
  • Execution of a payment transaction where the payer’s consent to execute the payment transaction is given by means of distance communication, a digital or an IT device and where the payment is made to the telecommunication, IT system or network operator that acts only as an intermediary between the payment service user and the seller of goods or the provider of services.

Malta PSP License Requirements

A Malta Payment Service Provider (PSP) License can be applied by a Company registered in the country. The process of application commences with the formation of the Company and by fulfilling the minimum initial capital requirements. For a company that wants to provide the services mentioned above, the minimum initial capital requirement would depend on the services sought to be provided. As such they are:

  • EUR 20,000 where the payment institution wants to provides money remittance services
  • EUR 50,000 where the payment institution provides the payment services through distance communication, a digital or an IT device to the seller of goods or the provider of services
  • EUR 125,000 where the payment institution provides any other services listed above

How can I get a Malta Payment Service Provider (PSP) License?

The application for a Malta Payment Service Provider (PSP) License has to be made to the Malta Financial Services Authority (MFSA) which will issue the license. It is essential that at least two individuals who will operate the business of the Malta Payment Service Provider are located in the country.

The next step is the preparation of documents such as the Application Form, Company incorporation documents, security policy, audited financial statements, operating manuals, Anti Money Laundering (AML) and Anti Terrorist Financing (ATF) guidelines, Business plans and any other documents sought by the MFSA. All individuals proposed as qualifying shareholders, controllers or nominated to key positions are also required to submit a personal questionnaire. Before submitting the application, there is also a pre-application meeting with the MFSA to discuss the nuances of the application.

Malta PSP License Costs

The application and documents have to be submitted to the MFSA with an application fee of EUR 3,500.

The MFSA may request additional documents and seek clarifications from the Malta PSP applicant before issuance of the license. The entire process of obtaining a Malta Payment Service Provider (PSP)  License takes about 3-6 months after the submission of the completed application.

After obtaining the Malta Payment Service Provider (PSP) License, the Malta PSP Institution will need to make regular submissions of accounts and records to the MFSA. These submissions need to be made on time to ensure the validity of the Malta Payment Service Provider (PSP) License. An annual fee of 0.0002 X Total Assets but not less than €2,500 has to be paid to the MFSA.

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

 

How to obtain a Malta Payment Service Provider License