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This is any of the below-mentioned legal entities carrying out payment activities and related operations:

• Authοrized payment institutions (AEMI);
• Small payment institutions (SPI);
• Credit unions;
• E-money institutions (EMI);
• Retail post office company in the United Kingdom;
• The Bank of England; and
• Government organizations, other than when doing public functions.

After being approved by any EU Financial Authority, PI can provide the range of belowlisted operations:

• Placement made by cash or electronic transfer;
• Converting the account holdings into cash;
• Payments, including crossborder bank-to-bank funds transfers;
• Payments in which funds are included in LOC: direct debit, payments carried out a payment card or a similar tool; credit transferring, etc.;
• Remittances, etc.

The main contrast between these approvals is that only E-Money Institutions can provide digital currency or e-wallet or other device. EMI can deliver all the services an API is authorized to offer. 

Though there are some similar features between virtual currency and electronic funds, crypto assets are not deemed electronic funds. While e-funds are applied for operations with government-issued and regulated monetary units such as USD and EUR, cryptocurrency is a virtual currency that has no fiat equivalent. If you wish to offer cryptocurrency exchange and cryptowallets, you may be mindful of acquiring a separate authorization.

You can become a SPI license holder, if you meet the following criteria:

• Overall payments as per month in the previous year must not be over 3,000,000 EUR.
• If you have not been offering services of transactional nature, or have been delivering them for less than one year, forecasted total monthly payment transactions must not be over 3,000,000 EUR.
• Employees must not have been accused of illegitimate turnover of funds and the transfer of funds to terrorists;

The main difference between an API and SPI license is an average monthly turnover in payments.

If it is under 3,000,000EUR, you can start operation as a SPI. If it exceeds this amount, then you will have to apply as an API.

You can acquire a SEMI license, if you meet the following criteria:

• Proof that when you launch your business, your e-funds business will generate a median number of liabilities regarding e-funds of lesser than 5,000,000EUR.
• Proof that, in one year preceding the application, the average of payments as per one month was not over 5,000,000EUR.
• An overlook of how you will safeguard the funds of clientele.
• Capital obligations must be fulfilled.
• The max. storage sum on the client payment platform where the e-money is stored must not be over 250EUR.
• When the business operations of the EMI bring average οutstanding e-funds less than 1,000,000EUR, it shall hold holdings (as a contributed capital) of at min. 50,000EUR. If the sum is over, the institution shall hold initial capital of at least 100,000EUR.

The main contrast between these approvals is a volume of payments circulation.

If your monthly turnover transactions are less than 5,000,000 EUR, you can become a small electronic money institution. If your monthly transaction amount exceeds this, then you will have to apply as an EMI.