A payment service provider (PSP) is an enterprise that offers payment services and primarily facilitates the transfer of funds between individuals or businesses. Whether it’s transferring money between bank accounts, paying for goods and services, or managing online transactions, PSPs make it possible to conduct financial operations. To carry out such an activity a company must obtain a payment institution (PI) license, which serves as proof that the enterprise has met the regulatory requirements stipulated by the Regulator – the Central Bank of Lithuania.
Lithuania has been a leading destination for fintech companies in the European Union with a growing number of Payment Service Providers (PSP) and E-Money Institutions (EMI) operating in the country. The business-friendly environment, which includes various support programs for foreign investors, has contributed to Lithuania’s attractiveness as a jurisdiction for this type of business.