Electronic Money Institution

An Electronic Money Institution (EMI) is a financial institution that is authorised to issue electronic money and provide payment services such as domestic and international electronic funds transfers and can provide bank accounts and e-wallets. EMIs are similar to banks except they are not allowed to lend money.

EMIs are generally licensed by the same government organisation that issues banking licenses, in most countries that is the central bank or equivalent government agency. They are used by fintech based challenger banks and similar disruptors that are competing against traditional banks for payment services.

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