The non-stopping development of new technologies favors the surge of e-commerce and generates an explosion of electronic transactions, mobile and internet payments. The Law of 10 November 2009 provides a framework for payment services and electronic money. It allows new players to enter the financial sector.
These players are Electronic Money Institutions (EMIs) and Payment Institutions (PIs).
An EMI is a legal person that has been granted the authorisation to issue electronic money as per Article 24-2 (Luxembourg undertakings) or Article 24-16 (non-EU undertakings) of the Law. EU EMIs duly authorised in their home Member State and acting through a branch, an agent or free provision of services, do not need formal authorisation from the Luxembourg authorities as they benefit from EU rules on free provision of services (Article 24-15 of the Law).
A PI is a legal person that has been granted authorisation to provide and execute payment services in accordance with Article 7 (Luxembourg undertakings) or Article 22 (non-EU undertakings) of the Law. EU PIs duly authorised in their home Member State and acting through a branch, an agent or free provision of services do not need formal authorisation from the Luxembourg authorities as they benefit from EU rules on free provision of services (Article 21 of the Law).
Isabelle Melcion-Richard
Advisory Managing Director, Regulatory & Compliance, PwC Luxembourg
Tel: +352 49 48 48 2469