How long does it take to get an e-money license?

You can legally register a British company and get a financial license issued by the FCA, which will allow you to establish an e-Money company in less than 12 months.

What does an e-money license do?

Electronic Money Institution (EMI) in the UK is allowed to issue and redeem electronic money. Electronic money is a digital equivalent of cash stored on an electronic device or remotely at a server. Furthermore, under the same license, you will be able to provide payment services in addition to e-money services.

What is Authorised electronic money institution?

Simply put, an authorised e-money institution is a limited version of a bank that can only provide payment services and hold funds of its clients. It means that without a separate authorisation, an authorised e-money Institution UK cannot provide investment, deposit and credit services.

Is PayPal an electronic money institution?

A very simple definition of electronic money (e-money) is cash stored in an electronic form. A common example is PayPal, where you can open an account and receive and transmit money to numerous third parties and store money in your PayPal account.

Is PayPal an e-money?

Electronic money is currency that is stored in banking computer systems. Electronic money is backed by fiat currency, which distinguishes it from cryptocurrency. Various companies allow for transactions to be made with electronic money, such as Square or PayPal.

What are the types of electronic money?

Electronic Money uses Internet, Digital Stored Value systems, and Computer Networks. Some of the examples of electronic money are Direct Deposit, EFT (Electronic Funds Transfer), Virtual Currency, and Digital Gold Currency.

What does it mean to issue electronic money?

Electronic money (e-money) is broadly defined as an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer. The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions.

How is money stored electronically?

Electronic money can be held in various places. Most individuals and businesses store their money with banks that provide electronic records of the cash on deposit. However, prepaid cards and digital wallets like PayPal and Square likewise allow users to deposit fiat currency for electronic money.