In the first quarter of 2023, the licensed activity revenue of Electronic Money Institutions (EMIs)

In the first quarter of 2023, the licensed activity revenue of Electronic Money Institutions (EMIs) and Payment Institutions (PIs) in Lithuania increased by 29% to €107 million, and payment transaction volume grew by 24% to €108 billion, excluding figures from Revolut Payments UAB.

The Bank of Lithuania continues to focus on the maturity of the EMIs and PIs sector, applying various supervisory measures, and emphasizing improvements in their operations. In Q1 2023, the Bank carried out 1 individual inspection and 2 assessments, applied 7 impact measures, organized 31 meetings with financial market participants, and issued 37 letters calling attention to areas for improvement.

At the end of Q1 2023, there were 129 EMIs and PIs (85 EMIs and 44 PIs), compared to 141 (88 and 53) in Q1 2022. During the reviewed period, 2 new licenses were issued and 5 were revoked.

The sector is characterized by high concentration; 7 or 5% of the largest EMIs and PIs generated more than €67 billion, or 62% of the total turnover, while 76, or 59%, generated only €11 million or 10% of the turnover.

In the examined period, 3 institutions failed to meet their capital requirements, with no significant changes from the previous year. The funds held by EMIs and PIs in central banks amounted to €1.1 billion in Q1 2023, down threefold from €3.3 billion in Q1 2022, mainly due to Revolut Payments UAB’s withdrawal from the sector.

The Bank of Lithuania continues to monitor issues related to EMIs and PIs’ ability to open bank accounts in credit institutions and received 2 notifications from credit institutions regarding closed or restricted accounts for EMIs and PIs.

Efforts to increase sector maturity continue, with the Bank of Lithuania emphasizing areas like money laundering prevention, capital and customer funds protection, and internal control requirements.

In Q1 2023, various measures were taken to improve communication and accessibility within the sector, including training on relevant topics, publishing the latest information for market participants, updating FAQs, and providing recommendations. Unaudited annual data and risk management analysis results for EMIs and PIs were also prepared and published.