Difference Between Payment & EMI

There are as many registration options for companies that want to become financial service providers as there are companies. These can be payment institutions (PIs) and electronic money institutions (EMIs). Their service is similar, but key differences exist in their functions, legal framework, and services. Therefore, we propose to take a closer look at the difference between payment institutions and electronic money institutions.

Do you want to know the difference between an electronic money institution and a payment institution?

Let's start by describing the term "payment institution". It is a company that provides services related to payment transactions on behalf of clients. It is important to realize that it is not a bank and does not provide services to individuals. The business plan of a payment service provider is to facilitate transfers and provide secure access to financial transactions. 

The main difference between the two payment service providers is that electronic money institutions can issue electronic money. Electronic money is the digital equivalent of cash stored on an electronic device or remotely on a server. Other differences include licensing and regulation at the legal level, where the funds are stored, and security and liability measures.

Choosing the proper jurisdiction is fundamental if you want to open your payment system or become an e-money issuer. Our company is based in the Czech Republic, which:

• is not an offshore;
• has competent regulation at the level of establishing Laws;
• offers the best price for registration;
• gives the right to operate throughout Europe;
• allows you to attract clients from all over the world.

For a better understanding of the difference between the companies, we recommend to look at the electronic money institution list and the list of services they offer. You can also order a consultation with our financial advisor, who will help you determine the best option for your situation. If you still have questions or want to start cooperation, leave a request on our website or conveniently contact us.