Purchasing an existing Electronic Money Institution (EMI) license can be a strategic move for businesses looking to enter the digital finance space. Below is a breakdown of the key reasons to consider this option:
Advantages of Purchasing an Existing EMI License
Starting operations can be quicker as acquiring an existing license is generally faster than going through the application process from scratch.
Buying an existing EMI means acquiring a business with a market presence and potentially a customer base, which can be invaluable.
Existing EMIs usually have operational systems and processes in place, reducing the need for initial setup efforts and investments.
An established EMI has existing relationships with regulatory bodies, which can facilitate smoother operations and compliance procedures.
Having a track record of financial performance can be advantageous, especially when it comes to building trust with customers and partners.
Purchasing an existing license provides clarity on the operational viability of the business model, reducing the uncertainty that comes with startups.
Access to Partnerships
Existing EMIs may already have partnerships and agreements with banks, payment processors, and other key stakeholders, providing immediate access to a network of collaborators.
An existing EMI comes with a team of experienced professionals who understand the business and the industry, saving time and resources on recruitment and training.
The due diligence process involved in acquiring an existing EMI provides an opportunity to identify and mitigate potential risks before the purchase.
Purchasing an existing EMI license offers a range of advantages, from time and cost savings to reduced operational uncertainty and immediate market access. However, it’s crucial to conduct thorough due diligence and evaluate the potential risks and challenges associated with acquiring an existing business to ensure a successful transition and sustainable operations.