Authorised EMI, small EMI or payment institution: what the licence types mean

An authorised EMI can issue electronic money without a turnover cap and must safeguard all customer funds; a small EMI does the same but only up to a regulatory ceiling and with lighter requirements; a payment institution can move money but cannot issue e-money at all. The label on a firm's register entry tells you which rules apply to your money.

What each permission allows

• Authorised electronic money institution (EMI). Can issue e-money and provide payment services with no upper limit on outstanding e-money. Subject to the fullest capital and safeguarding requirements.
• Small electronic money institution (small EMI). Can issue e-money but only below a regulatory threshold of average outstanding e-money. Lighter prudential requirements, which is why the threshold exists.
• Payment institution (PI). Can execute payments, transfers and acquiring, but cannot issue electronic money. If your balance is "stored value" in an app, that usually requires an EMI, not a PI.

Why the distinction matters to a customer

The permission determines the safeguarding regime that protects your balance and the limits a firm operates under. A small EMI sitting close to its threshold may be planning to upgrade to an authorised EMI, or may be restricted. Knowing the type is the difference between reading a firm's register entry correctly and guessing.

On every record in this directory the licence type is shown alongside the authorisation date and current status, drawn from the FCA Financial Services Register and the EBA EUCLID register.

Q: Is a small EMI less safe than an authorised EMI?

Not inherently, but the rules differ. Both must safeguard customer funds, but small EMIs operate below a turnover ceiling and face lighter prudential requirements. The right question is not "big or small" but "is the licence currently in force and are funds safeguarded".

Q: Can a payment institution hold my balance like a bank?

Generally no. Holding stored value that you can spend later is issuing electronic money, which needs an EMI permission. A pure payment institution moves money on your instruction but should not be holding a spendable balance as e-money.

Q: How do I tell which type a firm holds?

Check the firm's entry on the FCA or EBA register, or use a directory that surfaces the licence type directly. The register entry names the exact permission rather than a marketing description.

This guide is informational and not legal or financial advice. Confirm any firm's permission on the issuing regulator's register. Last reviewed: June 2026.