SPI license in Poland

In the world of fintech, payment licenses play a key role in ensuring transaction security and customer trust. SPI (Small Payment Institution) is a great solution for companies that want to enter the payment services market in Poland and use it as a springboard for further expansion into the European Union.

If you are planning to launch your own payment service, digital bank, crypto platform or other financial company, the SPI license can be your first step towards legally providing services in the EU. The SPI license is great for startups, small fintech companies and entrepreneurs who want to test their business model before moving on to an EMI license with more extensive capabilities.

With an SPI license, companies can provide the following services:

• Accepting and processing payments. You can accept funds from customers and transfer them to other accounts;
• Conducting money transfers. Allows you to make quick transfers between users;
• Payment for goods and services. Allows customers to pay for goods and services through your payment service;
• Issuing and managing payment cards. You can issue cards for customers and integrate them into the payment infrastructure;
• Payment gateways and POS terminals. Allowed to provide solutions for accepting payments on the Internet and at retail points of sale;
• Legal work in the EU. Allows you to enter the Polish market and take advantage of working within the framework of European legislation.

However, the SPI license has some limitations that are worth considering:

• Annual transaction limit – up to 1.5 million euros;
• Operations can be conducted primarily in Poland, but with the possibility of entering international markets;
• To expand the business outside Poland or increase the volume of operations, an EMI license will be required.

When choosing a license for your payment business, it is important to understand the key differences between an SPI (Small Payment Institution) and an EMI (Electronic Money Institution). These two licenses are governed by different regulations and are suitable for different business models.

1. Volume of operations

• SPI is a license for small payment companies that can process transactions of up to €1.5 million per year. This is a good option for startups and companies that are just entering the market;
• EMI, on the other hand, allows you to work without restrictions on the volume of transactions, which makes it the optimal choice for large players and international payment services.

2. Capital requirements

One of the main advantages of SPI is the low entry threshold: a license does not require significant authorized capital. This makes it accessible to small companies.
At the same time, EMI requires a minimum capital of 350,000 euros, which is due to the broader license options and increased requirements for the company’s financial stability.

3. Territory of work

The SPI license allows for operations primarily in Poland, although there is the possibility of entering the European market, but with certain restrictions.
EMI provides full access to all countries of the European Union under the passporting mechanism, allowing companies to provide services in any EU country without the need for additional permits.

4. Features and services

SPI license covers basic payment services:

• Acceptance and processing of payments;
• Conducting money transfers;
• Payment for goods and services;
• Working with payment gateways.

EMI, in addition to the above services, allows you to issue and manage electronic money, work with prepaid cards and offer additional financial services.

5. Regulation and compliance

SPI-licensed companies are subject to more relaxed regulatory and reporting requirements, which reduces operational costs. The regulator requires the implementation of basic anti-money laundering (AML/KYC) measures, but these are not as strict as those of EMIs.
For EMIs, the requirements are much higher: companies must adhere to strict reporting, cybersecurity and internal control standards, which requires a strong compliance team.

6. Time to obtain a license

The process of obtaining an SPI license typically takes between 3 and 6 months, while an EMI license can take between 6 and 12 months due to more complex verification and compliance procedures.

Conclusion

The choice between SPI and EMI depends on the scale of the business and the company’s goals. If you need a quick and affordable way to test a payment model with minimal costs, SPI is the ideal option. However, if you plan to scale and operate throughout the EU, it is better to go with EMI straight away, despite the more complex licensing process and higher requirements.

The SPI (Small Payment Institution) license in Poland is regulated in accordance with European and national payment services laws. It is granted to companies that want to provide payment services with a limited transaction volume (up to 1.5 million euros per year).

Key Regulatory Bodies

Financial Supervision Commission of Poland (KNF – Komisja Nadzoru Finansowego).

• The primary regulator responsible for the supervision of financial institutions, including small payment institutions (SPIs);
• Issues licenses and monitors compliance with regulatory requirements.

Payment Services Act.

• Polish version of the EU Directive PSD2 (Payment Services Directive);
• Defines requirements for payment security, customer protection and combating financial crime.