Features of conducting E-Money business in Lithuania in 2019

The previously existing Payment Services Directive has been replaced by a new Directive (PSD 2). It was adopted in order to increase the level of security for users of these services, as well as to stimulate competition in the market of payments, to adapt existing laws to customer needs. At present, the permit of the payment service provider can be issued remotely, which makes obtaining a license attractive for future business.

Features of the provision of payment services in the EU country

According to the new law, there will be two services that were not previously subject to regulation. These include services for the initiation of payments and information services for accounts.

According to the innovations, customers will be able to use third-party suppliers to access data on their bank account and management of funds, while the information will be safe, there is no threat to the money in the account.

The new Law on Payments is expected to establish authorization requirements for suppliers who want to obtain a license in Lithuania for the provision of relevant PIS or AIS services in the future. The requirement for suppliers who plan to provide only the first type of service - the availability of capital of at least 50 thousand euros.

The effect of the new law

Requirements for the execution of payment transactions can be applied to transactions that are not carried out in the currency of the European Union, as well as payments, when one of the suppliers is located in the EU area, and the other is beyond its borders.

The new law on payments and clearance permits highlights the exceptions:
• For commercial agents representing one transaction participant;
• The boundaries of network freedom will be narrowed - the exception applies to services that are carried out by separate tools;
• The exception for telecommunications payments will be narrowed and will be subject to a licensed service.

The new law provides that when a client receives access to an account through networks or when making electronic payments or other actions via a remote channel, the action must be authenticated to minimize the risk of fraud.

Innovation means that for authentication you will need to specify secret data that is accessible only to the user (password), or use an access key. Persons planning to apply for a license are required to take measures to preserve the personal data of users.

The conditions for obtaining a license remained virtually unchanged in 2019, however, in order to receive EMI in Lithuania, you will need to collect an additional package of securities to the Bank. It is necessary to collect data on security policies, procedures for tracking payment data, access restrictions, and so on. For advice on applying for a license, please contact our IT - OFFSHORE specialists.