Payment licenses

With the help of electronic payments, it is possible to carry out transactions, including international ones, much more comfortably. Companies interested in competing successfully must obtain a payment license – a document that allows them to conduct financial activities legally. The use of this extremely useful tool will help bring your business to success by expanding the circle of clients and partners.

The licensing process is labor-intensive and financially expensive. It takes place in several stages, determined by the legislation of the particular country in which the company is registered. Therefore, the licensee is required to have a deep understanding of the laws and comprehensive preparation for licensing. But since not every entrepreneur has the necessary knowledge and free time to overcome all the bureaucratic delays, it is necessary to enlist the support of specialists of the Lawrange Lawyers Association. Our lawyers are ready to promptly and professionally perform all the work for you.

Payment license and its types

A payment license is a special authorization document that gives its holder the right to provide services related to payment systems (e.g. money transfers, account opening, issuance of electronic money, etc.). Such authorization is issued by the state authority of the country where the relevant activity is planned to be carried out (as a rule, this is done by the National Banks or other specially created bodies). There are different types of payment licenses. First of all, their classification is based on the territorial principle. On this basis, licensing may be domestic and international.

Domestic payment licenses

Such authorization is issued to companies that are registered in the territory of a certain country, i.e. are residents thereof. With a domestic license, activities can be carried out only within the borders of the state in which the document was actually obtained.

International payment licenses

To register a payment license, a company does not have to be a resident of a country – it is allowed to operate in several jurisdictions. Thus, it becomes possible to carry out financial transactions from one country to another. When organizing a payment business, it is important to choose the right region.

Types of activities covered by the payment license

Obtaining a payment license allows companies to engage in:

Providing services for processing payment transactions and money transfers.
Issuing their own plastic cards, which significantly increases the comfort of customer service.
Provision of wire transfer services (depending on the type of license, transfers can be made both domestically and internationally).
Online payment processing, which helps to make online commerce much easier.
Organization of mobile payments – financial services are made more convenient and accessible to customers, which helps to increase customer loyalty and expand the customer base.
Money transfer and business transaction processing services, ensuring seamless financial interactions on a global scale.

Requirements for obtaining a license for payment services

Each country has certain requirements for licensees based on the applicable legislation, taking into account specific internal objectives. For the registration of a payment license to be successful, it is important to meet the selection criteria and fulfill all conditions.

Registered company

A permit applicant must be a legal entity – a corporation, partnership, or any other legal form available in a particular jurisdiction. It is important to have an office (physical, legal) and a unique name.

Confirmation of financial stability

Applicants must demonstrate to the Regulator that the funds used in the establishment of the company are legitimate and that they are available in sufficient quantities to meet current financial obligations. Audited financial statements will normally be provided.

The candidate must pay the amount of start-up capital that is stipulated by the country’s legislation. In addition, the regulator may request payment of capital:

basic;
based on risk;
based on expenses.

Existence of a well-organized operational structure

The company must use in its work viable technological equipment and professional staff (competent, conscientious, financially literate). All this together should ensure reliable operation of the company. In most jurisdictions Regulators impose requirements to have a certain number of directors and their compliance with certain eligibility criteria. It is required that they have a good reputation, the necessary experience to manage and perform their day-to-day activities.

Why applying to Lawrange

We have extensive experience in providing consulting and comprehensive services for obtaining financial licenses in popular jurisdictions. Our specialists will help you:

make a business plan;
gather the necessary documents and related data;
in communication with the local Regulator, state authorities, etc.

Payment licenses obtained with the assistance of Lawrange become the embodiment of reliability, safety and security of financial services companies. They play a crucial role when operating in the global financial markets. If you are interested in successfully promoting your own business, then contact us for more information on this subject.

Getting a payment license: choice of jurisdiction

Our company will help you obtain a payment license in Europe, the USA, Asia and popular offshore jurisdictions. Your task is to choose the most suitable jurisdiction for your business. For this purpose, it is recommended to be guided by the following criteria: