Cyprus' electronic money sector growing with dozens of new EMI applications under evaluation

The electronic money sector in Cyprus is emerging as a rapidly developing sector with enormous prospects, with the country ranking fourth in Europe in terms of the presence of licensed electronic money institutions (Electronic Money Institutions-EMI's), and also in eleventh place in Europe in terms of the presence, overall, of both electronic money institutions (EMI's) and payment institutions (Payment Institutions-PI's).

The development of the sector is directly intertwined with the general development of the technology sector on the island, with Cyprus, especially in recent years, establishing itself as an important fintech hub in Europe.

The friendly and sufficiently supportive business environment it offers ( e.g. regulatory framework), and the existence of a well-trained and highly educated staff in the broader financial sector, also act as factors that attract great interest in obtaining a license in Cyprus, from both well-known international names in the sector and from new institutions.

Today, 26 electronic money institutions (EMI's) and 11 payment institutions (PI's) are licensed in Cyprus, a total of 37.

However, this number seems, as everything indicates, about to increase, with the great interest that, as mentioned above, is being recorded and advocates for further growth in the sector being reflected in the fact that around 30 new applications are being examined under the microscope of the Central Bank of Cyprus - as the Authority responsible for licensing and supervision.

A strategy is being established

It is worth noting that, given the growth of the sector, the Central Bank is proceeding with the establishment of a specific strategy for the electronic money sector, based on recommendations included in a report prepared by experts from a foreign firm that was recently assigned to conduct an 'x-ray' of the sector and submit recommendations to shape the policy that the CBC may draw up.

As InBusinessNews has been informed by market players, the team of foreign experts was in Cyprus and, based on the terms of reference given to them, proceeded to evaluate the sector, preparing a report, which captures and analyses the image of the sector on the island and submits specific suggestions for the strategy that should be followed.

The report will be discussed in the context of a meeting of the Board of Directors of the Central Bank today, 19 December, with the recommendations of the foreign experts included in it providing guidelines for the policy and strategy to be established.

It is not ruled out that relevant official announcements on the matter from the CBC may be made today.

The new applications

With regard to new applications for licensing, it should be clarified that decision-making in this regard is the exclusive responsibility of the Governor of the Central Bank and not the Board of Directors.

Therefore, it is something that, de facto, cannot be institutionally addressed by the Board of Directors today, but other developments, namely the granting of new permits by the Governor, cannot be ruled out in the immediate coming days.

It is noted that the CBC's license to operate an electronic money institution is granted only to legal entities that are incorporated in the Republic, in which they must also have their registered office, operate their head offices and conduct at least a part of their business activities related to the issuance of electronic money and/or the provision of payment services unrelated to the issuance of electronic money.

It is worth recalling that the organisations licensed by the CBC that operate in the country as electronic money institutions and as payment institutions are housed under the umbrella of the Cyprus Association of Electronic Money and Payment Institutions (ACEMPI), which works towards the promotion and development of the sector in Cyprus.

Licensed institutions

The electronic money institutions that have already received an operating license from the CBC to date are, based on the publicly registered register, the following:

• CSC EUROPE Limited (formerly CSC24Seven.Com Ltd)
• Nuvei Limited (formerly Safecharge Limited)
• Unlimit EU Ltd (formerly Unlimit EU Ltd and previously CardPay Limited) (Commercial names: UNLIMIT)
• SIBILLA SOLUTIONS LIMITED (Operating under the trading name Profee)
• ISX FINANCIAL EU PLC (formerly ISX FINANCIAL EU LTD and formerly ISIGNTHIS EMONEY LTD)
• SEPAGA EMI LIMITED
• EcommBX Limited
• Oro Pay Ltd
• NETinfoPAY Ltd (formerly Allpay Ltd)
• Sureswipe EMI PLC (Operating under the trading name "Revsto")
• IPS Solutions Ltd (Operating under the Trade Mark - Payz)
• Koronapay Europe Limited
• EPMAP LIMITED (Operating under the trading name - "MAP E-PAY")
• MGL Wallet Ltd
• Moneygate Solutions Limited (formerly Realmode Services Limited)
• BnkPro Europe Ltd
• JCC Payment Systems Ltd
• Zipp Europe Limited
• SLIQ Payments Ltd (formerly, Zing Payments Ltd, and, previously, GAP Vassilopoulos International Ecommerce Network Ltd) (the operations shall commence upon approval granted by the CBC)
• Decta Limited
• Ecredo Limited
• TFI Markets Ltd
• Solid Processing Limited
• Payabl. Cy Limited (formerly Powercash21 Limited) (Payabl. CY Limited, has been licensed to operate as an Electronic Money Institution. By the time its license as an EMI gets activated, Payabl. Cy Limited maintains its license for operating as a payment institution.)
• Saamipay Ltd (formerly Haleel Finance Ltd) (Not approved to commence operations – Operations cannot commence before successful evaluation and approval by the CBC)
• La Orange Cy Limited
• Zolvat Ltd (the operations shall commence upon approval granted by the CBC)

(Source: InBusinessNews)