In Lithuania electronic money as well as electronic money licence is governed by the Law on Electronic money and electronic money institutions (hereinafter – the Law). Following the provisions of the Law, electronic money shall be understood as a monetary value that:

a) Is stored electronic, including magnetic, mediums;

b) has been issued for the purpose of making payment transactions,

c) is used as a means of payment and is accepted by a natural or a legal person other than the electronic money issuer. 

Only electronic money institution can issue e-money in Lithuania. In order to become an E-money Institution a legal entity shall obtain an operating license which is issued by the Central Bank of Lithuania. The Central Bank of Lithuania is a supervisory body of E-money institutions.

1. issuing electronic money;
2. distribution / redemption of electronic money;
3. services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account;
4. services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account;
5. execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;
6. execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders;
7. issuing and/or acquiring of payment instruments;
8. money remittance;
9. execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods or services.

An E-money institution shall have a minimum capital of at least EUR 350,000. The capital of an E-money institution shall always be no less than the greater of the following amounts: the minimum own capital requirement or estimated own capital requirements.

On the basis of the assessment of the risk management process, quality of the data collection of risk-related losses and the system of internal control, the Bank of Lithuania may set to the E-money institution an individual own capital amount — up to 20 per cent smaller or larger than the own capital requirement.

If an E-money institution has a limited purpose license, the average outstanding monthly amount of  E-money shall not exceed EUR 900,000 a month, including money held by any intermediaries for which the E-money institution assumes full responsibility.

Both E-money institutions and those E-money institutions with limited operation licence are subject to security requirements for received funds. An E-money institution shall protect funds for payment transactions received from electronic money holders or other payment service provider in the following ways: by separating these resources from the money of other natural or legal persons who are not E-money holders; by insuring these funds through an insurance contract or by obtaining their warranty or surety bond.

The activities of foreign E-money institution branch operating in Lithuania, are subject to the same requirements as E-money institutions, taking into account legal status of the branch and the activity characteristics, as well as the exceptions provided in the Law. It is not necessary to form a local subsidiary company in Lithuania before the company is entitled to submit application for the license.

1. Impeccable reputation;
2. at least two members of the institution’s board must have  a higher education in the field of law, management, business administration or economics or must have worked in the aforementioned fields for at least 1 year during the past 5 years;
3. the head must have higher education in the field of law, management, business administration or economics and have worked as a manager of a of a legal person of its structural subdivision for at least 2 years during the period of the past 8 years;
4. the heads responsible for the management of activities of the provision of payment services (heads of structural subdivisions), where a payment institution provides payment services and concurrently engages in other activities, and managers of a branch set up in another Member State must have higher education in the field of law, management, business administration or economics and at least 1 year during the period of the past 5 years must have worked for a financial institution in the sphere related to the provision of financial services, or a similar work in other enterprises, institutions or organisations.
   
   A person, who does not meet the established requirements, but possesses the appropriate qualification and experience, may also be appointed the head.

EUR 1 448 for the issuance of a license of an electronic money institution.

EUR 868 for the issuance of a license for restricted activity of an electronic money institution.