What you should know about a PSP license

According to the Law on Payment Systems and Payment Services, in force since 2012, only commercial banks, microfinance organizations, and non-banking institutions registered with the National Bank as Payment Service Providers can provide financial services in Georgia.

Registering is equivalent to obtaining a PSP license. 35 companies are currently registered with the National Bank, and you can get on the official list too. Doing so will guarantee the reliability of the service you provide and protect your business from sanctions from the regulator.

Please note: There is no separate Electronic Money Institution status in Georgia, so if your company plans to issue payment instruments, it will need the regular PSP license.

SERVICE

What services can you provide with a PSP license?

Every kind of money transfer

The most popular for fintech services, it covers subcategories ranging from international transfers without an account to payments from bank cards and internal accounts.

Issuing and processing electronic money

Popular with digital wallet operators who allow users to maintain an internal balance and issue virtual cards and other payment instruments.

Customer payments

Relevant for companies that allow users to make purchases on third-party services by direct debit or with credit.

Merchant acquirers

For payment gateway operators. Authorizes the processing of payments between customer and store for Visa, Mastercard, American Express, or UnionPay.

Cash withdrawals

Some e-wallet providers allow you to use partner ATMs or terminals to cash out. This too requires a license.

Advanced Open Banking

Includes Payment Initiation Services (PIS) and Account Information Services (AIS) to initiate payments on behalf of a customer and collect account information.

Highlights

Basic requirements for PSP license applicants

Form of business – LLC or JSC

The National Bank’s requirements for the corporate structure of a business preclude the registration of a payment service by a sole proprietorship.

Physical presence in Georgia

The company must have an office with video surveillance and security systems, and authorized representatives must spend at least 14 days in the country.

Beneficiary education

The National Bank requires documentation confirming that the founder has received a degree in the field of finance.

No history of criminal activity

The regulator requires that the organization’s managers, authorized representatives, and major shareholders undergo a criminal record check.

Regulatory compliance

The company must confirm the security of the service and prepare documentation on compliance with AML/CFT, risk management, and information protection, among others.

Registration fee

The National Bank of Georgia registration fee for a PSP license is GEL 10,000, which must be paid for the application to be considered.

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step by step

Steps to obtain a payment provider license

Find an experienced contractor

It can be difficult for Georgian companies to understand the legal requirements, to say nothing of non-residents. So the first stage should really include a consultion with the lawyers at PB Services, who can help draft a plan and estimate deadlines.

Prepare basic documention

Your success hinges primarily on this stage, and includes founding documents, a business plan, a description of your software architecture, information on beneficiaries, and the compliance matrix, which must be prepared correctly, translated into Georgian, and notarized.

An in-depth risk assessment

Depending on the actual services to be provided, your company may have to satisfy additional requirements. If customer funds are to be deposited, an escrow service will be needed, and if the company outsources to specialists, a risk assessment will need to be carried out, just to name a couple possibilities.

Application and registration

The National Bank of Georgia is obliged to review the documents within 60 days of receiving your application (the countdown gets paused if the regulator requests clarifications or finds errors). If the review is successful, the company will be registered as a Payment Service Provider.

Benefits

Why you should contact PB Services

7+ years of licensing experience

We have processed hundreds of documents and have travelled the road from application to approval more than once. We understand the National Bank requirements and where the pitfalls lie. Our experts will save you weeks of revisions and resubmissions.

An understanding of international financial standards

Georgian laws are based on FATF and European Union standards, fit to local circumstances. We understand these finer points and help build processes that ensure the business complies with local and global norms, especially important since many of the companies receiving PSP licenses operate all over the world.

We have established working relations with government agencies

Regular interaction with the National Bank, the Register of Entrepreneurs, and others means we know how to get answers faster and navigate every stage as smoothly as possible.

We support your business after you receive your license

A personal manager will keep in touch with you during the application process and after you receive your PSP license, since you’re sure to have questions about monthly, quarterly, and annual reports, among other things.

We provide turnkey corporate services

We can help with business registration in Georgia, opening corporate accounts, bookkeeping, HR outsourcing, and legal support of every kind. PB Services can help with pretty much any task!

We guarantee confidentiality

We abide strictly by contracts, and our reputation is our greatest asset. We employ advanced protection systems to guard your company’s corporate secrets and innovations as if they were our own.

Payment Service Provider License in Georgia

We help you register with the National Bank of Georgia to legally process payments