The Financial Conduct Authority (FCA) has granted the Electronic Money Institution (EMI) license to Volt, a paytech company based in the UK. This significant development allows Volt to issue virtual accounts to customers as a standalone product, marking a notable step forward in the diversification of the fintech industry.

The EMI license.

The EMI license is a crucial regulatory requirement for financial institutions operating in the EU and the UK. It empowers the license holder to offer a range of financial services, including:

• Issuing electronic money, such as prepaid cards, electronic wallets, and other forms of e-money.
• Executing payment transactions.
• Issuing payment instruments, such as credit or debit cards.
• Providing account information services.
• Facilitating money remittance, among other services.

To obtain an EMI license, applicants must meet several key requirements:

• A start-up capital of €350,000 must be readily available in a designated bank account.
• The management team must be of good repute and possess relevant qualifications.
• The company must demonstrate adequate financial and non-financial capacity to operate as an EMI.

It is important to note that while these requirements are specific to the UK, they may vary in other EU countries.

What does this mean for the fintech sector?

This move by Volt underscores the growing diversification and innovation within the fintech sector, as companies continue to expand their offerings and enhance their regulatory compliance to better serve their customers.

Stay updated on legal news here.

Follow LineaBlu on LinkedIn here