Resolutions of the Board of the Bank of Lithuania
Two electronic money institution licences issued
The Board of the Bank of Lithuania issued two new electronic money institution licences authorising to issue electronic money and provide payment services set forth in the Republic of Lithuania Law on Payments. They were issued to UAB B4B Payments Europe and Demivolt, UAB.
UAB B4B Payments Europe belongs to Payment Card Solutions Group Ltd (UK) and uses the group trademark B4B Payments. The envisaged business model of the institution is related to the group’s current activities, i.e. the provision of pre-paid cards and the integrated expense management platform to business customers. A part of the group’s customers will be transferred to the institution in Lithuania from Payment Card Solutions (UK) Ltd, an electronic money institution registered in the United Kingdom and supervised by the country’s financial market supervisory authority. The target market of UAB B4B Payments Europe covers not only Lithuania and other Baltic states, but also France, Spain and other European countries. The institution expects to spark the interest of small and medium-sized companies using traditional cost management methods, yet searching for more modern solutions.
Demivolt, UAB, another company granted an electronic money institution licence, intends to issue and redeem electronic money, issue payment instruments as well as provide credit transfer, payment processing, payment initiation and account information services. The institution will serve business customers operating in European and Asian e-commerce and securities markets. Initially, the institution plans to operate in Lithuania, the United Kingdom and Spain as well as have customers in Asia, later expand to Germany and Italy, and finally cover the entire European Economic Area. The beneficial owners of the institution are based in Hong Kong.
Licence of a payment institution issued
The Bank of Lithuania granted RIA Lithuania, UAB, a payment institution licence authorising it to offer payment services indicated in the Republic of Lithuania Law on Payments. The institution intends to offer natural persons money remittance as well as payment account opening and related services.
The institution’s sole shareholder is Euronet Worldwide, Inc. (100% of shares held), whose shares are traded on the Nasdaq stock exchange in the US. This company owns the RIA Money Transfer group of companies, which is known globally as a provider of money remittance services. RIA Lithuania, UAB, is also a member of this group. The group plans to transfer customers of the RIA payment institution operating in the United Kingdom to the institution in Lithuania. The most important countries to the RIA group in terms of money remittance orders are France, Spain and Germany. Orders from these countries will be transferred to the institution in Lithuania. The expansion is planned in other European countries as well.
Having secured the licence, RIA Lithuania, UAB, is obliged to provide the Bank of Lithuania with a copy of the agreement concluded with an insurance company, confirming proper implementation of measures for safeguarding customer funds before it starts providing the aforementioned licensed financial services.