A payment institution is a market participant licensed by the Bank of Lithuania providing payment services. A payment institution may perform money remittances, payment transactions, provide cash deposit and cash withdrawal services, perform direct debit or credit transfers, etc. A payment institution may not accept deposits from unprofessional market participants and issue electronic money. In addition to payment services, it has the right to provide additional services that are closely related to those services, e.g. currency exchange.
A payment institution may hold a licence for restricted activity. Where the payment institution holds it, its management is subject to less stringent requirements, the capital and shareholder eligibility requirements are not applied, but restrictions on the turnover of payment transactions, provided for in the Law on Payment Institutions, are applied. Such an institution may only operate in Lithuania.
A payment institution holding a licence for unrestricted activity may operate across the EU; it is subject to the own funds requirements provided for in the Law on Payment Institutions.