E-money licences: Does your company need one?

An e-money licence enables businesses to issue, store, and transfer electronic money under regulatory oversight. But is it the right path for your company? Or are there smarter, more scalable alternatives?

If your company operates in fintech, insurance, travel, or software, you may be wondering whether obtaining an e-money licence is necessary to stay competitive.

This article breaks down what an electronic money licence is, how it differs from a banking licence, what it costs, and whether your company truly needs one—or if a regulated partner like Edenred Payment Solutions could be a better option.

What is an e-money licence?

An e-money licence (or electronic money licence) is a regulatory authorisation that allows companies to issue and manage electronic money. This includes prepaid cards, digital wallets, virtual accounts, & e-vouchers. E-money institutions (EMIs) are not banks, meaning they cannot offer traditional lending or deposit-taking services.

For more information: Read our guide to e-money

Who regulates e-money licences?

Regulations vary by region, but key regulators include:

• UK: Financial Conduct Authority (FCA)
• EU: National regulators under the European Banking Authority (EBA)
• US: Varies by state; requires money transmitter licenses (MTLs) rather than a unified e-money framework

Companies seeking an e-money license must meet strict capital, compliance, and operational requirements. But before jumping in, it’s essential to understand how this differs from a banking licence—and whether your company truly needs one.

E-money licence vs banking licence: What’s the difference?

A banking licence and an e-money licence may seem similar, but they serve very different purposes.

An e-money licence works well for businesses focused on digital products and services. A banking licence, on the other hand, is essential for companies looking to provide traditional financial services like lending and deposits.

If your goal is to enable digital payments or offer prepaid solutions without taking on full banking responsibilities, an e-money license could be a better fit.

But before you apply, speak to our team about how we can support you.

How much do e-money licences cost?

Applying for an e-money licence isn’t just about paperwork—it’s a significant investment in compliance, technology, and ongoing regulatory maintenance.

Costs

1. Application & licensing fees
   • UK (FCA): £5,000+ for full authorisation
   • EU: Varies by country: Check with your national financial regulation authority for the up-to-date fees.
   • Legal and consultancy fees can add another €50,000–€100,000
2. Capital requirements
   • Minimum required capital: Typically €350,000 for full EMI status
   • This is the minimum capital requirement and cannot be used for operations
3. Compliance & regulatory costs
   • Hiring compliance officers, auditors, and risk teams
   • Regular regulatory reporting & anti-money laundering (AML) procedures
4. Ongoing operational costs
   • Secure IT infrastructure for transaction processing
   • Fraud prevention systems
   • Customer support and dispute resolution processes

For many companies, these costs quickly add up—leading them to explore alternative solutions.

Does your business need an e-money license?

Not every fintech, insurance, travel, or software company needs an e-money license. In fact, for many, obtaining and maintaining one becomes a distraction from core growth initiatives.

When getting an e-money license makes sense

• You plan to operate a payment service independently, without relying on third-party providers.
• You have the capital, resources, and compliance expertise to meet strict regulatory demands.
• Your business model depends on direct control over customer funds rather than integrating existing payment solutions.

When a partner solution is better

• You need to go to market quickly: working with a partner typically takes less time than acquiring your own licence.
• You’d rather focus on your core product than managing compliance and audits.
• You want to avoid upfront capital requirements and instead leverage an established EMI’s infrastructure.

For many businesses, outsourcing e-money services to a regulated partner like Edenred Payment Solutions is the smarter choice.

A smarter path: how Edenred Payment Solutions can unlock growth

Instead of applying for your own e-money license, partnering with an established EMI like Edenred Payment Solutions allows you to launch faster, reduce costs, and stay compliant without the regulatory headache.

Why choose Edenred Payment Solutions?

Faster go-to-market
Access the benefits of e-money without the long, arduous process of obtaining a licence.

Lower compliance burden 
Edenred Payment Solutions handles all regulatory, transaction monitoring and ensures standards, risks & audits are managed.

Scalability without limits
Expand across multiple European regions without obtaining individual licenses, with passporting rights.

Proven track record
Edenred Payment Solutions is a trusted provider with a history of delivering reliable payment solutions.

By leveraging Edenred Payment Solutions' e-money services, you can focus on innovation and growth rather than regulatory red tape.

Making the right choice

If your business requires full control over digital payments, applying for an e-money licence may be the right move—but it comes with significant costs and responsibilities.

For many companies, partnering with Edenred Payment Solutions offers a faster, more cost-effective way to enter the market and scale globally without the regulatory burden.

You’ll want to make sure you’re making an informed decision when it comes to applying for an e-money license. Talk to our team today to discuss options.