A small Payment Institution is a natural, legal person or organizational unit that is not a legal person, to which the Law grants legal capacity. SPI is entered in the register of payment service providers and electronic money issuers and operates in the field of any payment service, except for the service of initiating a payment transaction, as well as the service of access to account information. If you are interested in this area of activity, then pay attention to Small Payment Institution for sale – a ready-made commercial structure that will require minimal initial effort.
Small Payment Institutions appeared by amending the law on payment services. The activity of such a financial institution is to provide payment services on a smaller scale, therefore limited regulatory requirements apply. For example, institutions of this type are not required to obtain permission from Commission for Financial Supervision.
However, the activity in the field of payment services as a small payment institution is regulated; therefore, its implementation requires obtaining an entry in the register of payment service providers and electronic money issuers maintained by the Financial Supervisory Authority. The date of entry into the Register is considered the day of commencement of the activity.
A distinctive feature of a small payment institution is that the average total amount of payment transactions over the last 12 months cannot exceed the equivalent of 1,500,000 euros per month.
Operations Types that SPI Can Perform
- Cash deposits to the account of the contractor, as well as withdrawal of funds from the account.
- Money transfers on payment orders of the addressee, the payer and the payer through the addressee (these operations are carried out if we are not talking about lending).
- Issuance of cards, coupons, as well as terminals.
- Making money transfers, in the event that the payer and the addressee are not users of the contractor’s system.
- SPI license provides for regionality. Regionality provides for the conduct of activities in the territory of the chosen jurisdiction, the location of the contact person and accountant, the legal address and office of the company, as well as the compliance manager. If you wish to work with other countries, there is the possibility of concluding partnership agreements with companies.
- Transactions can be carried out if the average monthly turnover of the payment system does not exceed 3 million euros, including cash-in & cash-out.
To obtain a small volume payment service provider license, the following documents are required.
From applicant’s side:
- Documents confirming the identity of the Applicant (in the case of a legal entity, the statutory documents of the company) and all shareholders of the Applicant’s company;
- A document confirming legal stay in the territory of the European Union;
- Original certificates of non-conviction in the territory of the country of residence, country of citizenship and any other country in which the customer has been for more than 6 months over the past three years;
- Certified signature of the application of the managing person (to be performed together with the head);
- A brief describing the activities of the firm.
Company executive also prepares the following documents:
- A detailed action plan, including:
- Sales plan for 12 or more months ahead;
- Description of the payment system;
- Financial plan;
- Investment plan;
- Implementation plan for internal audit and compliance.
Before submitting all documents for getting a Small Payment Institution license, you need to have a clear understanding of your technical solution and have all draft contracts for outsourcing services, as well as contracts with parties involved in the process of providing payment services.