If you’re a fintech company looking to offer digital wallets or payment services, you may be wondering whether to apply for a UK EMI license or an EU EMI license. Both allow your company to issue electronic money and provide payment services, but they differ in terms of regulatory requirements, market access, and operational flexibility.
In this guide, we compare the two licenses to help you decide which one is best for your business.
What Is a UK EMI License?
A UK EMI license allows a company to operate in the United Kingdom under the supervision of the Financial Conduct Authority (FCA).
Key points:
- Full authorization from the FCA
- Minimum capital requirement of €350,000
- Must comply with safeguarding, AML/KYC, governance, and reporting rules
- Ideal for companies targeting UK customers
Official guidance:
Electronic Money Institutions – FCA
Consultants like 7BAAS services can help fintechs navigate the application process and avoid common mistakes.
What Is an EU EMI License?
An EU EMI license is issued by a European Union member state’s financial regulator, allowing you to operate across the EU through passporting rights.
Key points:
- Offers access to multiple EU countries without separate licenses
- Capital requirements vary by country, usually around €350,000 minimum
- Must comply with local regulator rules plus EU directives
- Suitable for fintechs targeting European customers
UK EMI License vs EU EMI License: Key Differences
| Feature | UK EMI License | EU EMI License |
|---|---|---|
| Regulator | FCA (UK) | National regulator in EU country |
| Market Access | UK only | All EU countries (via passporting) |
| Capital Requirement | €350,000 minimum | Typically €350,000, may vary by country |
| Compliance | FCA rules for AML, safeguarding, governance | EU regulations + local rules |
| Time to Launch | Several months | Varies by country; can be longer due to local checks |
| Operational Control | Full control in UK | Must follow local regulator’s requirements |
| Post-Brexit Consideration | UK license no longer grants EU access | EU license allows EU operations, not UK |
Which One Should You Choose?
Choose a UK EMI license if:
- Your primary market is the UK
- You want full control under FCA rules
- You plan long-term operations in the UK
Choose an EU EMI license if:
- You want access to multiple EU countries
- Your target customers are mostly in the EU
- You’re prepared to manage compliance across different countries
Many fintechs consider holding both licenses if they plan to operate in both markets, but this comes with higher costs and compliance responsibilities.
FAQs
1. Can a UK EMI license operate in the EU?
No. Post-Brexit, UK EMI licenses do not provide passporting rights to EU countries.
2. Can an EU EMI license operate in the UK?
No. EU licenses do not give access to UK customers; a separate UK EMI license is required.
3. How much capital is needed?
Both UK and EU licenses usually require a minimum of €350,000, but some EU countries may have slightly different requirements.
4. Which license is faster to get?
It depends on the regulator. UK applications typically take several months; EU timelines vary by country.
5. Can I hold both licenses?
Yes, fintechs targeting both markets often apply for both, though it increases costs and compliance duties.
Conclusion
Deciding between a UK EMI license and an EU EMI license depends on your target market and growth strategy.
- A UK EMI license is best for companies focused on the UK, with full FCA supervision and control.
- An EU EMI license is better if your customers are across Europe and you need passporting rights.
Understanding these differences early helps you make the right choice and plan your compliance and operational strategy effectively.
