Payments and e-money
Payments and e-money licences cover businesses that facilitate digital transactions, enabling companies to provide secure, regulated payment solutions. They are essential for businesses that handle and transfer funds electronically. The most common business models that are created under this authorisation are:
- Online payment processors
- E-wallet providers
- Money transfer services
- Digital payment gateways
- Remittances
Trends boosting the sector
Technological advancements
The integration of blockchain technology and artificial intelligence in financial services is transforming fraud detection, risk management, and transaction efficiency—key areas in today’s compliance-driven environment.
Regulatory updates
With rapid technological evolution, regulators are enhancing Anti-Money Laundering (AML) standards and introducing consumer protection requirements, like the FCA’s safeguarding rules, to strengthen user trust and resilience in new market entrants.
Market drivers
The rise in e-commerce, cross-border transactions, and financial inclusion initiatives fuels demand for seamless, fast payment solutions. Businesses in this sector are well-positioned to meet consumers’ need for convenient digital payments.
Notable companies that have obtained payments and e-money licences
- Stripe: Known for its robust online payment processing solutions used by more than 100 businesses of all sizes. By 2023, the company had crossed the $1 trillion total payment volume metric.
- Wise: Offers low-cost international money transfers for more than 12 million customers around the world and supports multiple currencies, which has allowed the company to move £118.5 billion between 2023 and 2024.
- Cash App: A widely used mobile payment service that provides peer-to-peer payments and digital banking solutions. In 2023, the app generated $14.3 billion in revenue and reached 55 million monthly active users.