# Electronic money institution

> An electronic money institution (EMI) is a regulated firm that issues electronic money and payment accounts without a full bank charter.

Source: https://www.neobank.wiki/wiki/electronic-money-institution
Last updated: 2026-08-11
Categories: Financial technology, Banking, Digital banking

An **electronic money institution** (**EMI**) is a firm authorised to issue electronic money and operate payment accounts under specialised payments regulation rather than a full deposit-taking bank licence.[^emi1] In the UK and EU, many early [neobanks](/wiki/neobank) and fintechs—including [Wise](/wiki/wise) and early [Revolut](/wiki/revolut)—operated as EMIs before or instead of becoming banks.

## Overview

EMIs hold customer funds as electronic money, typically safeguarded (segregated) rather than used for balance-sheet lending like a bank. They can offer IBANs/payment accounts, cards and FX, but face limits on deposit-like products and credit compared with licensed banks.

## Versus banks and partner banks

A licensed [neobank](/wiki/neobank) such as [Monzo](/wiki/monzo) takes deposits and can lend. An EMI issues e-money. A [partner-bank](/wiki/partner-bank) fintech may own the app while a bank or EMI sits underneath. Customers often experience these models similarly inside a mobile app.

## Examples

[Wise](/wiki/wise) is a canonical multi-currency EMI-style business. [Qonto](/wiki/qonto) and other European business finance apps have used e-money or specialised licences. Some firms upgrade from EMI to bank status over time ([Revolut](/wiki/revolut)).

## Frequently asked questions

### What is Electronic money institution?

An electronic money institution (EMI) is a regulated firm that issues electronic money and payment accounts without a full bank charter.


## References

[^emi1]: Electronic money institutions are authorised under EU/UK e-money and payments rules to issue electronic money. — https://www.fca.org.uk/firms/electronic-money-payment-institutions