Becoming a PSD or EMD Agent – What you need to know & how we can help!

In the modern environment of digital financial services, the agency model is a popular alternative to obtaining a full-fledged license for payment or electronic money services. If you are planning to launch a fintech project or expand an existing business within the EU, PSD (Payment Services Directive) or EMD (Electronic Money Directive) agent status could be your key to the market.

ELI Swiss, based in Switzerland, helps entrepreneurs and companies to organize their entry into the EU financial infrastructure through the agency model. We work with carefully selected partners and accompany clients every step of the way.

Becoming an Agent for a Payment or E-money Company

This significant thing lets you offer financial services like processing payments or distributing e-money under the umbrella of an already licensed company, known as the Principal. Essentially, you operate without needing your own separate license because the Principal has already gone through all the necessary regulatory checks.

This is a great way to:

– Enter the market quickly: avoid the lengthy process of obtaining a full license.

– Save resources: you won’t need to spend as much capital, or as many compliance and infrastructure resources.

– Gain experience: get hands-on experience in the financial services sector before potentially scaling up.

Key Differences from a Licensed Firm: the biggest distinction is that as an agent, you don’t directly interact with the regulator; all your actions are facilitated through your Principal. While the Principal holds all legal responsibility, you are still required to meet their established standards. Principals are also very selective about who they partner with, so expect a rigorous vetting process.

How does the process of joining the system as an agent happen?

At ELI Swiss, we help clients go all the way from planning to active operations. Below are the stages that a future agent typically goes through:

1. Principal search and preliminary agreements

We offer a list of potential PIs or EMIs ready to work with agents. These partners have valid licenses, an established structure and a desire to scale through an agent network.

2. Inspection and audit of your company

The principal will conduct due diligence, assess corporate structure, internal control system, AML/CTF policy and other aspects. Our team assists with the preparation and structuring of documents.

3. Application for registration of the agent

Once approved, your candidacy is submitted to the regulator via Principal. In the EU or Switzerland, this process usually takes 1-2 months.

4. Onboarding and launch of operations

Upon approval, you will be connected to the Principal’s technical and process infrastructure.

We can provide training to your team, implement monitoring systems and offer templates for Among the key directions of our work is the provision of complex Services, which include Principal selection, compliance support, legal structuring and post-registration support.

Benefits of a PSD or EMD agent

It is optimally suited for things like startups, financial integrators, technology platforms and companies that want to quickly start activities in the field of payment or electronic money services, without going through the complicated and long way of obtaining a full license.

a) Fast access to the market;

Registering as an agent usually takes a few weeks to two months, which is much faster than obtaining an EMI or PI license. This allows the company to start processing payments or distributing electronic money under the protection of a reliable Principal in a short time. Such speed is especially important for startups that seek to test a product or exit an MVP (minimum viable product) in a short time.

b) Absence of requirements for authorized capital;

One of the main reasons for the popularity of the agency model is the absence of the need to contribute significant regulatory capital.

c) Regulatory flexibility;

The agent is also required to work in accordance with internal policies, including AML/CTF and KYC procedures. However, such a structure allows you to focus on the business, delegating complex compliance tasks to an experienced partner. This is especially useful for small teams that do not yet have a full-fledged legal department.

d) A turnkey infrastructure;

In addition to the activity permit, the agent gets access to the already established technical, payment and banking infrastructure of Principal. This may include integration with processing platforms, SWIFT/SEPA payments, IBAN accounts, CRM systems, transaction monitoring tools, etc. Such access saves months of time on building systems from scratch and allows you to focus on developing your client base.

How can ELI Swiss help you?

We provide support with Swiss precision and European standards in mind. Our clients receive search and verification of reliable Principals, full support for due diligence preparation, development or adaptation of internal policies (compliance, AML, risk management), consultation on the deal and legal aspects and post-registration support! We don’t just guide the client through procedures – we explain, educate, help make strategic decisions, and avoid pitfalls. Our goal is not only to launch, but also to ensure the perfect working of the case. Therefore, feel free to contact us, we treat everything with honesty and simplicity!

Summary

If you want to enter this market with minimal risks and in a short period of time, the agency model is just what you need. Being an agent is not a limitation, but an opportunity. It is a launch platform that allows you to test your business model, enter the market quickly and legally, without burdening yourself with unnecessary costs or obligations. ELI Swiss will be your exact guide in the financial world. We combine experience, analytics and practical support to make your entry into the market not just a reality, but a full-fledged success story.