Glossary
Electronic money institution (EMI)
An electronic money institution, EMI, is a company authorised to issue electronic money, prepaid value held against funds received, and to provide the payment services a payment institution may offer. It can open accounts for customers and merchants, hold their balances indefinitely and run wallets and prepaid cards; the price is a higher initial capital, EUR 350,000 in the EU, and safeguarding of all outstanding e-money. Many payment businesses hold an EMI licence because it lets them keep merchant balances and offer accounts.
EMI and payment institution
A payment institution may hold funds only for the time a payment takes; an EMI may hold them as e-money for as long as the customer wants. That is the difference between settling a merchant’s funds on a schedule and giving the merchant an account to keep them in. Both passport across the EEA; both are obliged entities under anti-money-laundering law.
Where EMIs appear in payments
Wallet providers, neobanks without a banking licence, PSPs that offer merchant accounts and balances, card programme managers issuing prepaid cards, crypto businesses that hold fiat for customers.
On the platform
Tranzify’s clients with EMI licences run merchant balances, settlements and payouts on the platform’s ledger as their licence allows; the platform records balances, fees, settlements and rolling reserves, and the client holds and safeguards the money.
Updated: 2026-11-08