We can support a number of different types of payment service providers, including:
Money remittance firms
There are approximately 1,000 firms that are authorised to provide money remittance services. A money remittance service involves a person or business sending funds across borders to a beneficiary.
There are numerous different types of business models within this sub-sector.
Authorised money remittance firms are required to safeguard customer funds. This means that funds received from customers need to be held within a safeguarding bank account until the beneficiary is paid. As a result, one of the biggest issues for a growing remittance company is the availability of working capital to fund pay-outs.
Electronic Money Institutions
There are approximately 100 authorised electronic money institutions (EMI). The two main products of electronic money business are the issue of prepaid cards and the use of electronic wallets.
A prepaid card is a card that is loaded with cash and can be used at different retailers. An example of a prepaid card is the Thomas Cook currency card.
An electronic wallet involves an individual exchanging cash for an electronic store of value. The value is held within a virtual wallet and can be used to spend at different retailers. Perhaps the most well-known example of an electronic wallet is Pay Pal.
All electronic money institutions are required to safeguard customer funds. Authorised EMIs have an initial capital requirement of €350,000. The financial statements of EMI’s must be audited, even if they qualify as small company.
A merchant acquirer is a financial institution that is an intermediary between a bank and a merchant (retailer) that facilitates purchases of goods by debit or credit card.
A payment facilitator is a third party agent that may sign an acceptance agreement on behalf of a merchant acquirer. It will receive settlement of transaction proceeds from an acquirer, on behalf of the sponsored merchant. A sponsored merchant is a merchant whose payment services are provided by a payment facilitator. The presence of payment facilitators in the market broadens the types and numbers of merchants that can offer payment by debit or credit card. For merchant acquirers, payment facilitators offer the opportunity of increased card volumes.