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The number of European EMIs has doubled in four years, according to a report.
The number of European EMIs has doubled in four years, according to a report
The UK has the most electronic money institutions (EMIs) in Europe, even though they now need to register in both the UK and EU
Client funds held by electronic money institutions (EMIs) in Europe have doubled in four years, exceeding €35 billion, according to a recent ClearBank report.
The UK leads the continent with nearly 250 EMIs, followed by Lithuania with roughly 80. However, the number of institutions is not a perfect indicator of market share due to closures through acquisitions or suspensions.
The report highlights the increasing competition between traditional banks and EMIs. EMIs have emerged to fill gaps left by banks in the fintech sector.
While initially fostering agility, the relaxed regulatory environment for EMIs is now facing stricter scrutiny due to concerns about safeguarding customer funds.
The report predicts continued growth in fintech partnerships, market consolidation, and stricter regulations aimed at ensuring the safety and resilience of EMIs.
Key Regulatory Developments:
- The UK government is reviewing payment service regulations, focusing on safeguarding customer funds in case of insolvency.
- The upcoming PSD3 in the EU is expected to bring changes in the regulatory landscape for EMIs.
PSD3 Streamlines Regulation
The report predicts that the upcoming PSD3 will simplify payment service regulations in Europe by incorporating the 2EMD and categorizing EMIs as a sub-category of payment institutions. Existing PIs and EMIs will need to reapply for a new license under PSD3 within 18 months.
At International Fintech Business (IFB), we can help you in registering an EMI license or buying a ready-made EMI license company in the most popular jurisdictions. Contact us today!
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