Payment institution vs E-money institution (EMI): what is the difference?
A payment institution may provide payment services, such as money remittance, but may not issue electronic money. An e-money institution is authorised to issue e-money, a stored value that is a claim on the issuer, and may also provide payment services.
This page explains the rules in general terms and is not legal or regulatory advice. Check the primary source and take advice on how the rules apply to your firm.
| Payment institution | E-money institution (EMI) | |
|---|---|---|
| In one line | A payment institution is a firm authorised to provide payment services, such as money remittance or executing credit transfers, without being a bank or an e-money issuer. The category exists in EU law under PSD2 and in UK law under the Payment Services Regulations 2017. | An e-money institution (EMI) is a firm authorised to issue electronic money, a stored monetary value that is a claim on the issuer and is accepted as payment by others. EMIs exist in EU law under the E-Money Directive and in UK law under the Electronic Money Regulations 2011. |
| Read more | Payment institution | E-money institution (EMI) |
How they work together
Both categories exist in EU and UK law and both carry safeguarding duties on customer funds.
Where Polynopsis fits
Polynopsis gives no regulatory advice. It shows a payment institution where its money is across banks, partners and wallets, in one read-only position.
Polynopsis gives no regulatory advice. It shows an e-money institution where its money is across banks, partners and wallets, in one read-only position.
Frequently asked questions
What is the difference between payment institution and e-money institution (emi)?
A payment institution may provide payment services, such as money remittance, but may not issue electronic money. An e-money institution is authorised to issue e-money, a stored value that is a claim on the issuer, and may also provide payment services.
What is Payment institution?
A payment institution is a firm authorised to provide payment services, such as money remittance or executing credit transfers, without being a bank or an e-money issuer. The category exists in EU law under PSD2 and in UK law under the Payment Services Regulations 2017.
What is E-money institution (EMI)?
An e-money institution (EMI) is a firm authorised to issue electronic money, a stored monetary value that is a claim on the issuer and is accepted as payment by others. EMIs exist in EU law under the E-Money Directive and in UK law under the Electronic Money Regulations 2011.
Sources
- Directive (EU) 2015/2366 on payment services in the internal market (PSD2) · EUR-Lex, Publications Office of the European Union
- Apply to become a payment institution · Financial Conduct Authority
- The Payment Services Regulations 2017, Schedule 3 (Capital requirements) · legislation.gov.uk (The National Archives)
- Directive 2009/110/EC on the business of electronic money institutions · EUR-Lex, Publications Office of the European Union
- Apply to become an e-money institution · Financial Conduct Authority
- The Electronic Money Regulations 2011, regulation 19 (Capital requirements) · legislation.gov.uk (The National Archives)
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) · EUR-Lex, Publications Office of the European Union
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator