Payment & Electronic Money Institutions

To operate, it is necessary to obtain an electronic money institution license.

Electronic Money Issuer

Key features of an Electronic Money Institution (EMI):

• Ability to store account holder's funds directly within their institution;
• Provision of payment services to facilitate electronic transactions;
• Authorization to issue electronic money and convert clients' real cash into virtual currency.

Payment institutions specialize solely in providing various payment services and ensuring secure financial transactions. They do not issue electronic money. They handle client funds that are kept in regular bank accounts.

The difference between a payment institution (PI) and an electronic money institution (EMI) lies in:

• The scope and range of services offered: EMI has a broader operational field, while PI focuses on managing transactions;
• Initial capital requirements: EMI requires €350,000, while PI needs €20,000 to €125,000, depending on the services provided;
• Business models and technical security features for accounts.

Equity Firm Meaning

Equity hedging is becoming increasingly popular in investment strategies. It reduces the risk of losses, enhances a portfolio's potential return, and provides the opportunity for re-entry into the stock market.