For those who want to set up an electronic money institution (EMI) in Ireland, there are steps to follow before achieving this milestone. People interested in achieving this milestone must first apply for authorization at the Central Bank of Ireland. This article details the steps necessary to establish an EMI in Ireland.

The digital world has made many people come up with creative ways to change how we live. One of these emerging inventions is e-money. Short for electronic money, this is the digital counterpart to regular cash. They operate through either software or physical hardware, and cards are the most common method of using them. E-money is typically stored in an e-purse or e-wallet.

By 2017, e-wallets and digital payment methods were similar among 68% of the European population. In the continent, 84% of people making purchases are also active on the internet – a number that will likely increase in the future. Further studies indicate that 63% of buyers have a high probability of using e-wallets to avail of loyalty benefits. On the other hand, 56% use them to enable cashless payment schemes. European mobile payments are projected to increase by three times in 2021, from EUR 52 billion to a much larger EUR 148 billion.

EMI LICENSE IN IRELAND

Specificity of the registering

Much like all financial entities worldwide, EMIs in Ireland have to submit to authorities or regulatory bodies. The Central Bank of Ireland is in charge of monitoring institutions that offer services like payments, e-money, lending, and investments. Anyone who wants to distribute e-money services in the region must have a license from the local government.

There is a list of the main requirements for obtaining an Electronic Money Institution license in Ireland. The minimum amount of capital should be at least 350,000 euros. Maintenance of the EMI must be carried out by a trusted officer. They must fulfill job qualifications and have relevant experience in both fields of work. And also, the protection of client money through a separate client bank account. Insurance catered to finances may also be an option.

EMI LICENSE IN IRELAND

Legal system

The main goals of PSD2

Participation in a more unified and widely used European payment marketplace;

Empowerment for all payment service providers;

Increase safety and security for payments;

Uphold the rights of consumers.

The European Union has a directive that mandates business owners to set up payment services. This is formally known as Payment Service Directive 2 (PSD2). It holds over financial institutions-from banks to their customers and clientele:

The PSD2 was made official on January 13, 2018. It seeks to empower innovation and other services for the increased security and safety of customers.

Services That a Licensed Electronic Money Institution Can Offer in Europe

EMI LICENSE IN IRELAND

A licensed EMI can offer several services. They enable customers to avail themselves of varying payment methods that are more convenient and secure. These include the following:

Distribution of e-money in the form of cards or e-wallets;

Cash in transactions to a payment account, including other operations for the said account;

Cash withdrawals from payment accounts, including other operations for the said account;

All payment transaction types, such as fund transfers using a person’s preferred payment provider. Carrying out direct debits is also possible, as well as payment card transactions. Credit-based transactions and standing orders are also permitted;

Payment transactions involving credit lines for the client, such as direct debit distribution, card transactions, and credit transfers;

Posting of payment methods or other means of securing money to other people;

Money remittance services, payment initiation processes, and account evaluation.

The Perks of Having an EMI License in Ireland

Ireland is among the top fifteen most innovative countries worldwide. The country places first in investment incentives around the world. Ireland consistently ranks in cheerful surveys about flexibility and adjustments to work routines. Ireland also ranks consistently within the top 10 ratings for education and skill set;

Corporation tax rates are only 12.5%, making it among the more lenient regions;

Outshines other neighboring countries in West Europe through investments and financial literacy;

It also boasts its title as the second most competitive European economy;

All licenses issued in Ireland are recognized within all member regions of the EEA. The process of passporting allows EMIs to deliver services throughout the EEA area;

Distribute e-money and related products. These include prepaid cards, e-wallets, payment accounts that have IBAN codes, and others. These are allowed throughout the entire continent;

Licensed EMIs also allow joint payment methods, like SEPA;

Hand out Visa or Mastercard cards for individual people or business groups;

EMI LICENSE IN IRELAND
EMI LICENSE IN IRELAND

Documentation package

Due diligence documents for all stakeholders;

Plan for operational matters

A business setup that includes financial estimates for 3 years;

Proof of share capital;

Methods to protect the funds of users and personal data

Adherence to protocols issued by the government and the state;

Overview of mechanisms for transaction monitoring, handling, security measures;

An overview of the EMIs’ organizational structure;

Overview of mechanisms for carrying out sensitive payment transactions, including data storage;

Policies for business continuity;

Business mindsets and beliefs that address data collection; including performance, exchange of money, and possible fraud;

In-house control procedures that adhere to state obligations; prohibiting theft, corruption, and terrorism.

Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in Ireland.

We will take care of all matters: analysis of your business model and country selection, formation of the legal entity, assistance with banks, preparation of all internal policies and procedures, assistance with business plan and program of operations, compliance, assistance with third party providers, application, and documents preparation to apply for EMI license, communication with central banks.

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