If there’s one thing every digital business must ensure runs smoothly, it’s the payment system. Whether you run an online store, an international platform, or a digital service with customers from around the world, the ability to collect payments securely, quickly, and seamlessly is a fundamental key to success.
That’s where two major players come into the picture: PSP (Payment Service Provider) and EMI (Electronic Money Institution). The question is – how do you know which one is right for you?
PSP or EMI – What’s the Difference?
Simply put, a PSP is a payment service provider. It connects your website to various payment systems – such as credit cards, Apple Pay, Google Pay, and more. Its job is to transfer the customer’s payment to your account, quickly and securely. An EMI, on the other hand, is a licensed electronic money institution – it can hold client funds, issue virtual bank accounts, and provide smart financial services such as IBANs, digital wallets, and cross-border transfers.
Usually, an EMI includes everything a PSP offers – and much more. But sometimes, a simple and fast PSP solution is enough for a business just starting out.
Three Key Criteria When Choosing a Provider
- Regulation and Trustworthiness
Make sure your provider has a valid license in the relevant country (ideally within the EU), complies with KYC/AML regulations, and has a strong reputation. A problematic provider can lead to delays, frozen accounts, or endless compliance checks. - Support for Your Countries and Currencies
Not all providers support every country or business type. Confirm that they work with your market – both in terms of geography and industry. For example: not every EMI supports crypto or investment businesses. - Connection Speed and Technical Support
A good partner will get you up and running within days – not months. Also, check the level of support: is there a dedicated contact person? Live tech chat? Assistance in your language?
In Summary
Choosing a PSP or EMI is not just a technical decision – it’s a strategic one. If you choose the right one, you’ll be able to start accepting payments quickly, securely, and in a way that fits your business structure. If you’re unsure – don’t do it alone. Working with a professional consultant can save you time, stress, and costly regulatory mistakes down the road.