An Electronic Money Institution (EMI) is a legal entity whose activity is based on the right to issue means of payment in the form of electronic money.

A legal entity has the right to participate in the issuance of electronic money and to provide associated services only after obtaining a special financial license, such as an Electronic Money Institution license (AEMI or SEMI).

A Payment Institution (PI) is a type of financial institution that provides payment services to individuals, businesses, and other entities. Furthermore, payment institutions facilitate various types of financial transactions, such as fund transfers, payment processing, currency exchange, and the issuance of payment instruments such as credit cards, debit cards, and electronic money.

Payment entities typically operate within the regulatory framework established by the competent financial authorities of their jurisdiction. These regulations aim to ensure the security, protection, and efficiency of payment systems. Similarly, they seek to protect consumers and businesses from fraud, abuse, and other risks associated with financial transactions.

The European Parliament and the Council adopted a directive that has been transposed by most European countries. This directive concerns the law on payment services and electronic money, thereby defining a new type of actor in financial markets: the electronic money issuer.

There are two types of institutions or rather two distinct types of licenses: the partial license and the full license.

And what is the difference? The partial license has certain restrictions in terms of activities, such as the maximum amount allowed in monthly payment transactions. Furthermore, it does not allow for passporting. This means that it does not permit offering services in countries outside the jurisdiction of incorporation or obtaining the license.