Payment service provider licence in Cyprus.
CySEC. PSD2. EU passporting.
Cyprus offers EU-regulated payment institution and electronic money institution licences through CySEC — providing full PSD2 compliance and EU passporting rights across all 27 member states.
Lighter-touch licence
For PSPs processing under €3 million per month. Reduced capital and compliance requirements. No EU passporting.
Full PI licence
Full payment institution authorisation under PSD2. EU passporting. No transaction limit. Required for most fintech and payments businesses.
EMI licence
Authorised to issue electronic money — prepaid cards, digital wallets and stored value products. Higher capital requirement but broader service range.
Why licence in Cyprus for payments?
Cyprus has become an increasingly popular jurisdiction for payment institution and EMI licensing under PSD2. CySEC is an experienced, pragmatic regulator with clear published guidance on licensing requirements and timelines. The 15% corporate tax rate, combined with EU passporting, makes Cyprus competitive with Lithuania and Malta for payments businesses seeking an EU regulatory home.
A Cyprus PI or EMI licence provides full EU passporting — meaning a single Cyprus authorisation allows the licensee to offer payment services across all 27 EU member states through notification to host country regulators. This is significantly more efficient than obtaining separate licences in each country.
Need company formation alongside your PSP licence? incorporate.cy handles Cyprus company setup, banking and corporate compliance.
Visit incorporate.cy →Applying for a PSP or EMI licence in Cyprus?
Ask Taxerly about PI and EMI licensing, CySEC requirements, capital obligations and EU passporting.