Why Malta is the Ideal Jurisdiction for PSP and EMI Licenses

Malta continues to position itself as one of Europe’s most attractive jurisdictions for financial institutions seeking Payment Services Provider (PSP) or Electronic Money Institution (EMI) licenses. With an EU-compliant regulatory framework, favorable tax regimes, and a well established fintech ecosystem, Malta offers unparalleled advantages to firms entering the digital payments space.

The evening ambiance at the entrance of Valletta, the capital of Malta, a center for EMI and PSP.

At Fiduscorp, we specialise in helping fintech startups, entrepreneurs, and established financial institutions obtain their PSP or EMI license. We offer a full suite of services, including: business structuring, license application, corporate goverance, accounting, tax and other necessary ongoing support.

What is a PSP or EMI License?

The key difference between a PSP and EMI lies in the issuance and management of electronic money. While both provide payment services, EMIs are specifically authorised to issue and manage electronic money, which includes digital wallets and prepaid cards, while PSPs do not have this capability.

Payment Service Provider :

• Facilitates payment transactions using conventional methods like credit/debit cards, bank transfers, etc.

• Does not hold or issue electronic money

• Provides services like executing payment transactions, operating payment systems, and offering foreign exchange services.

Electronic Money Institution:

• Can perform all the functions of a PSP

• Authorised to issue electronic money and manage stored value, which can be used for various payment transactions

• Examples include digital wallets, prepaid cards, and other payment instruments where funds are stored electronically

• Must comply with stricter capital and safeguarding obligations due to their ability to hold and issue stored value.

Both are regulated by the Malta Financial Services Authority (MFSA) and provide passporting rights across the EU and remaining EEA countries.

Explore more on our Payments Institutions page.

Benefits of Obtaining Your PSP or EMI License in Malta

• EU Passporting Rights

• Malta's reputation for stability and innovation

• Access to a skilled workforce and English-speaking environment

• Competitive corporate tax structure

• Supportive regulatory environment for fintech and digital finance

• An existing clients' base.

At a lively EMI office in Malta, employees work diligently together, engaging in discussions amidst organized workstations.

Licensing Requirements

The Process can be summarised as follows:

• Corporate structuring to ensure tax efficiency and/or protect owners

• Well-prepared business plan and financial projections

• Initial capital requirements

• Physical presence in Malta

• Fit and proper shareholders, directors and senior management

• Robust IT infrastructure and risk management framework

• Detailed AML/CFT compliance procedures and policies.

How Fiduscorp Supports Your Licensing Journey

At Fiduscorp, our licensing experts provide end-to-end support tailored to your business model. Here's what we offer:

• Feasibility Assessment and jurisdiction comparison

• Corporate sructuring and incorporation

• Project Plan, split in phases leading to license

• Business Plan development aligned with MFSA requirements

• Financial Plan, ensuring capital, liquidity, expenses and other ratios are in line with regulatory expectations

• License Application preparation and submission

• Ongoing compliance, accounting, and regulatory reporting

• Other services to supplement the client's resources.

With years of hand-on experience in the Maltese financial services, we streamline the licensing process while ensuring full regulatory compliance.

FAQs

Q1: How long does the MFSA licensing process take? Generally between 4–9 months, depending on application readiness and complexity.

Q2: Can I operate across the EU once licensed in Malta? Yes. Malta licenses offer passporting across the EU and remaining EEA countries under PSD2 and EMI Directives.

Q3: Do I need directors or staff in Malta? Yes. MFSA requires substance in Malta, including management and conrol being taken by persons resident in Malta. This is also important for tax compliance.

Ready to Launch Your PSP or EMI Institution?

Whether you're building a new fintech startup or expanding an existing operation into the EU market, Fiduscorp is your gateway to becoming a licensed PSP or EMI in Malta.

Get in touch for a free consultation: www.fiduscorp.com/contact

Or learn more about our full scope of services.