E-Money License in Netherlands 2025

Due to the competitive nature of the Dutch economy, foreign companies find it warm, stable, and rewarding to invest their funds. The GDP per capita has been higher as compared to the average EU than other countries. The Dutch Economy has maintained for years and throughout history some of the most powerful economies globally.

According to the World Economic Forum, international rankings place Dutch among the most competitive economies in Europe, being ranked the fourth most competitive nation in 2020 according to the IMD rankings, whereas it was ranked the fifth most innovative nation according to the Global Innovation Index 2020.

Business competitive climate

Most governments offer incentives to companies during a competitive climate—especially to innovators.

These fiscal undertakings are based on a multilingual workforce that has a high level of education and an open mind.

In addition to accommodating internationals dwelling in the Netherlands, the Expat Centers of the country have given rise to the success of the nation’s economy in terms of a dynamic and diverse workforce.

Infrastructural advancements

Geographically speaking, the Netherlands just makes sense. Within a day – 24 hours – both Amsterdam and Rotterdam can reach 95% of the world’s most lucrative markets. Efficient airports, railways, waterways, and ports connect the Netherlands not only nationally but also with the rest of the world.

Innovative and future-proof

Unrivaled entrepreneurial drive- The Netherlands embraces unparalleled entrepreneurial drive. With a strong economy, Dutch innovation embraces sustainability and digitalization to emerge as an attractive destination for the world’s top companies. Companies look at the Netherlands in pursuit of agrifood, financial services, and quantum technology—they seek partnership in the public-private sectors.

A nod toward the nation’s future-oriented thinking came when the EU Innovation Scoreboard 2022 slotted the Netherlands into fourth place for innovators.

This is the second consecutive year that the Dutch economy grows by 4.5 percent, after a growth of 4.9 percent in 2021. Such growth over two years in a row had not been recorded yet in this century.

There was record-high inflation and also a record-high household consumption. Statistics Netherlands, or CBS, has presented an annual review of the economy for 2022.

Since March 2022, Coronavirus has vanished from the landscape. The Russian invasion of Ukraine jolted the Dutch economy at the end of February. The immediate result was runaway inflation. However, the housing market continued to be very strong despite price increases corrected for inflation.

During the last few years, the Netherlands has been outstandingly concerned with increasing the number of EMI permits received. Due to the country’s solid regulatory framework, extremely favorable conditions for international teams, and efficient licensing process, it offers broad opportunities to fintech foundations willing to operate in the industry of payment options.

De Nederlandsche Bank (DNB) is one of the most active regulators in issuing PI and EMI licenses within the EEA.

De Nederlandsche Bank – the Dutch regulator – issues licenses ahead of most European jurisdictions, where it usually takes 12-15 months to get an EMI license.

EMI concept

A prepaid card is a kind of e-money, and EMIs are permitted to issue prepaid cards, electronic wallets, and other types of electronic money for both individuals and businesses.

The e-money provision should be exercised by a legal entity.

A claim on the issuer that is a monetary value electronically stored, including magnetically, issued upon receiving funds and intended to make a payment transaction, which is accepted by a natural or legal person other than the electronic money issuer.

It is a means of holding cash on bank computers, wherein it is also backed by fiat money. In other words, the e-equivalent of cash is thereby an electronic means of paying for something.

Definition of EMI license

The license for issuing electronic money is known as an EMI or Electronic Money Institution.

This way, companies can carry out quasi-cash operations, such as replenishment of electronic wallets, purchases of virtual currency, and payout to forex accounts. The license also extends the possibility of your business being an EMI institution—a company able to issue digital currencies to both physical persons and legal entities.

Without an electronic money institution, a person wouldn’t even think about creating a virtual currency wallet, a third-party payment service, and any other resources which involve virtual currency.

However, the PIs, Payment Institutions, cannot issue E-money. The main differences between Electronic Money Institutions and Payment Institutions are that the former has the prerogative to issue e-money.

However, though PIs and EMIs offer payment accounts, they have different legal treatments that often lead to their different business model adaptations. How one may attain a license as an EMI in 2023 from a number of competent jurisdictions is discussed in this article.

Governments have a number of valid reasons for applying laws and regulations in the offering of financial services due to a perceived risk.

Minimum standards the respective governments in the areas where companies want to operate set have to be adhered to by companies offering financial services.

For example, in some jurisdictions, the EMI license is issued by a different regulatory body. Before businesses can forward their applications, regulatory bodies in their jurisdiction of choice require them to research and meet certain requirements.

Aspects to consider

• Because of the short processes of EMI licensing, licensing from EMI is relatively easy. The Dutch regulator, De Nederlandsche Bank, issues a license in a realistic timeframe of 9 months—although some cases are completed in 6 months—where most European regulators take 12 to 15 months. In addition to enabling companies to enter the market more quickly, a fast-tracked process does permit them to monetize emerging opportunities sooner.
• Openness to International Teams: The regulator in the Netherlands doesn’t have strident local presence requirements for international teams. As a matter of fact, Dutch regulators do not require a big local presence like many other agencies do. For an application, only two local directors are needed. This can permit the majority of the team to emanate from another European country. Such a regulatory environment in the country gives openness to an avenue where fintech firms can operate and ensures that they are in a very good position to collaborate with teams across the globe and make full use of diverse talent pools.
• Documentation in English: A major reason and advantage for the application of EMI in the Netherlands is that applicants can apply for most of the authorization documents in English. Dutch does not insist on local language documentation; instead, it accepts English documentation. In this way, it reduces the burden and cost arising due to translations. Such flexibility has made international applicants appeal in a much more effective way.

Services

According to Section 3:34 of the Financial Supervision Act, under an e-money EMI/electronic money institution, one can perform the following:

Issuance of electronic money and providing of services connected with it.

Other payment methods, manage Accounts through which payment is made:

• The users of such accounts can deposit as well as withdraw cash, purchase goods and services with account cards, place and withdraw cash. The transfers can also be facilitated and the setting up of direct debits.
• Merchant services: This can be provided by holders of a license issued to the concerned payment institution. The company can also operate as a master merchant and receive payments initiated by various merchants using credit cards.
• Remittance of funds: In this, the payment institution may provide money remittal or transfer service. The payment service provider might provide international cross border payment services.
• PIS: Payment initiation services. This model allows an initiator, with the user’s consent, to initiate payments directly from the user’s bank account, bypassing the process through the Visa and Mastercard networks. A licensed-as-a-payment-institution payment service provider can initiate the payment directly from the bank account of a user and transfer it directly to the bank account of a merchant retailer.
• Account Information: This is the permission that will allow service providers to see consolidated accounts information in one place with the consent of the user.

How Do EMI and PI Accounts Differ?

Despite the fact that many customers would believe otherwise, PIs and EMIs are different from bank accounts.

To evaluate the functionality of accounts, let’s consider what type of institution is offering these accounts.

Because PI accounts are not allowed to hold money for their users, they have more limitations compared to EMI accounts.

• It is expected that the inflow of PI funds in an account would be spent, transferred, or withdrawn in a relatively short period of time.
• In contrast with the EMI license, which allows customers to open electronic wallets and shop online, withdraw cash, or pay bills, the users of the EMI license can open only electronic wallets.

Due to these big differences in functionality, the capital requirements of establishing each kind of institution also differ quite significantly.

Obtaining an EMI license in the Netherlands

Requirements

Pursuant to the Dutch regulator, De Nederlandsche Bank (DNB), in order to obtain an EMI permit (E-money Institution), an entity needs to comply with specific requirements.

The said requirements have to be followed by any payment service provider for the latter to maintain a system of money that is both fair and honest.

Following are the applications for acquiring a Dutch EMI license: An applicant must establish a legal entity for executing payment services activities in the Netherlands. The applicant must fulfill the minimum fund requirements. The applicant must have at least €350,000 in authorized funds to obtain an EMI license in the Netherlands.

• It verifies whether key employees of the applicant firm are fit and proper to carry out their functions. The personnel concerned must be suitably qualified, experienced, and of good repute.
• In addition to the commerce plans, applicants are required to submit a marketing strategy and a risk management plan. In the commerce plan, the model of commerce proposed must be shown to be viable and sustainable.
• Apart from an organizational structure, it is required that the applicant have a management team which shall oversee the operation and compliance of the EMI. It is upon DNB’s evaluation whether the organizational structure proposed is sufficient and effective to ensure good governance and proper risk management.
• Applicants should develop sound operational plans, including schemes on risk management, tools for internal control, and compliance techniques. These plans should be supported by evidence that the applicant monitors and manages any risks associated with payment options.
• The applicant shall implement measures for preventing the use of its services for illegal purposes regarding AML/CFT, including customer due diligence, ongoing transaction monitoring, and reporting suspicious activities to appropriate authorities.
• It should demonstrate a sound IT system, and safety measures must be well undertaken so that the customer’s data is kept safe, transactions are secure, and cybersecurity threats are at a distance.
• DNB requires applicants to be able to establish comprehensive procedures for reporting and record-keeping, as laid down under the governing requirements. The purpose is to undertake routine reporting of financial data, transaction data, and other operational data relevant to the business.
• EMI holders should maintain ongoing compliance for as long as they are licensed to ensure that the regulations of DNB are complied with. This also includes AML/CFT compliance, compliance with regulatory inspections, and regulatory audits cooperatively.

The official DNB guidelines and regulations represent the most current information about EMI permits, and companies should look to the same for the most accurate information.

We can also provide invaluable guidance during the license application process by hiring the services of our professional legal and regulatory advisors specializing in Dutch licensing.

As an EMI/EMI licensed in the Netherlands, you are allowed to offer your services as an electronic money service provider in all member states of the European Economic Area without needing further licensing.

Austria, Belgium, Bulgaria, Croatia, Cyprus (Republic of), the Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, In the European Economic Area,

Information to be provided

You will be required to provide the following information when applying for an E-money EMI / Electronic Money Institution license:

Timeline

An complete application must be processed – in other words, a final decision made – within three months of its receipt by the Dutch regulator. In practice, it usually takes around five to six months to gain the license.

Things to bear in mind

The governing regime allows the payment institutions to achieve broader capabilities. A Dutch PI license holder can provide the possibility for the end customer of longer storage of money in their electronic wallet, while other competent authorities completely separate the PI from the EMI license.

This further cements the Netherlands as a progressive home for anything fintech, where fintech companies are allowed to make groundbreaking, computerized banking decisions.

Dutch regulators also focus much attention on the AML procedure, with full conformance expected vis-à-vis the requirements touching on AML. DNB standards have high benchmarks in this respect, which is not unique to the country.

To the extent that the EMI grant is available, it is envisaged that the fintech companies will be in a position to demonstrate or attest to the fact that they have sufficient experience in AML rules and relevant procedures that would provide a fair deal of risk mitigation in respect thereof. Stringent AML policies on the part of DNB ensure the integrity and respectability of the Dutch financial system.

The Netherlands is a quite expensive country, considering employee salaries, office rent, and other legal fees. This can be somewhat minimized by having a small central office and distributing the expenses intelligently among various different authorities, since the need for local presence is much lower.

They need to balance the ratio of costs to profits, by which they can develop a momentum within the European fintech market.

The key to your business’s success is an EMI License. Here at Regulated United Europe, our team will be able to assist in incorporating a company and applying for such an EMI license. It is not easy to get such a license, and a case thus requires legal assistance.

With the help of our experienced lawyers, business development specialists, and financial accountants, you’ll be able to get EMI business up and running in the Netherlands as fast and smooth as possible in a fully transparent manner.

Contact us today for your personal EMI license consultation that will set the stage for enduring success.