EU Payment and E-Money Licenses: 2024 Data and Three-Year Trends

This article offers insights into the number of e-money and payment institution licenses issued in the EU in 2024, along with a three-year comparison. If you're evaluating the best jurisdiction for your business, this comprehensive analysis will help you make an informed decision.

Licensing Data Used in the Analysis

This analysis presents combined statistics for electronic money institutions (EMIs) and payment institutions (PIs), as licensing practices differ across jurisdictions. For example, Lithuania predominantly issues e-money licenses, while countries like Poland focus on payment institution licenses for the same business activities. The statistics include only issued licenses and exclude withdrawn ones.

Let's first review the trends for 2024 and then examine the data over the past three years to provide a broader perspective on regulatory activity.

2024 Analysis: Key Changes in Licensing Activity

In 2024, 90 payment institution and e-money institution licenses were issued. When comparing the years 2022, 2023, and 2024, we observe consistent market dynamics. In 2022, 80 licenses were issued, followed by 92 in 2023. After a 34% decline in licenses issued in 2022 compared to 2021, it is clear that the market has stabilised over the past three years. Furthermore, despite a significant number of licenses being withdrawn in recent years, the overall impact on the number of companies operating in the market has remained minimal.

In 2024, only four countries stood out by issuing 8 or more licenses. Spain and France each issued 8 licenses, while Germany and Malta led with 12 licenses each.

Germany: A Powerhouse of Localised Solutions

Germany issued 12 licenses in 2024, showcasing its strong regulatory presence. With a focus on robust local teams and market-specific solutions, Germany remains an ideal choice for domestically oriented businesses. However, its stringent regulatory requirements can pose challenges for companies looking to operate internationally.

Malta: The Rising Star

Malta made significant strides in 2024, issuing 12 licenses—a sharp increase compared to previous years. This growth reflects the regulator’s commitment to developing its fintech sector. This jurisdiction is well-suited for a wide range of fintech companies and, unlike many other regulators, accepts gambling, crypto and other businesses usually considered high-risk, of course, within a strong compliance framework, trustworthy team and solid source of capital. Additionally, Malta remains a crypto-friendly jurisdiction.

France: Consistency in Growth

France issued eight licenses in 2024, maintaining a steady output. The country’s fintech ecosystem thrives on its emphasis on local teams and solutions, making it a favourable jurisdiction for businesses targeting the French market. The approach of the French regulatory body is very similar to that of Germany. This jurisdiction is not suitable for international teams.

Spain: A Resurgent Hub

Spain saw a strong rebound in 2024, issuing eight licenses after granting just two in 2023. This resurgence alleviated concerns about Spain’s fintech-friendliness, showing that 2023 was merely a temporary slowdown. The country remains an attractive destination for international businesses, provided they meet local presence requirements.  Another factor is that companies often choose Spain for its favourable relocation conditions, such as pleasant weather, great food, and a strong labour market with moderate costs and a good talent pool.

Finland and Denmark: Stability in Licensing

Both Finland and Denmark maintained steady licensing activity, issuing 4-5 licenses each in 2024. While these jurisdictions are less dynamic, they offer a reliable regulatory framework for fintech companies.  These jurisdictions are a great choice for companies targeting the Nordic market.

3-Year Period Analysis: Emerging Trends and Dominant Players

A single year’s data may not be highly representative due to various random factors influencing the number of issued licenses in each separate country. To accurately identify fintech-friendly jurisdictions, analysing trends over a three-year period provides a more reliable perspective.

The Netherlands: The Top Performer

With 27 licenses issued over the past three years, the Netherlands remains a leader in the EU fintech market. Its regulatory framework supports solid international payment businesses by allowing document submissions in English and requiring minimal local presence during the initial phase.

Lithuania: Changing Priorities

Once a leader in the sector, Lithuania issued only 12 licenses over the last three years. This marks a significant decline compared to those in 2021, 2020, and prior years. This shift indicates a change in the regulator's approach, making Lithuania a less fintech-friendly jurisdiction than before.

Sweden: An Unexpected Decline

Sweden experienced an unexpected downturn in 2024, issuing only one payment institution license while revoking five. Until 2024, Sweden had been very active in the fintech sector, and it remains to be seen whether this trend will continue in 2025.

Ireland: Favouring Established Companies

Ireland issued 15 licenses over the last three years, maintaining a regulatory environment best suited for well-established companies. Strict local presence requirements and a preference for businesses with strong financial backgrounds make it an ideal jurisdiction for established British firms seeking access to the EU market, as well as larger fintech players.

Cyprus: A Slow but Steady Performer

Cyprus issued 17 licenses over the last three years, remaining a steady player in the fintech market. However, longer application processing times continue to be a drawback for many businesses.

Latvia: A Promising Newcomer

Over the past three years, Latvia issued 4 licenses, reflecting its smaller market scale but growing ambitions in the fintech sector. The regulator has made notable strides in positioning Latvia as a fintech hub by fostering open communication during the pre-application process and introducing its Electronic Clearing System, a direct gateway to SEPA.

Final Thoughts

The year 2024 highlighted a mix of stability and change across the EU fintech licensing landscape. While dominant jurisdictions like Germany, France, and the Netherlands upheld their strong positions, emerging players such as Malta and Latvia demonstrated promising growth. Understanding jurisdiction-specific trends and regulatory nuances will be crucial for businesses looking to enter or expand within the European fintech market. 

Data source: European Banking Authority's register.