Overview
Cyprus offers a well-regulated framework for payment services, positioning itself as a strategic entry point for financial service providers in the EU. The regulatory environment is overseen by the Central Bank of Cyprus (CBC), which ensures compliance with both local and EU-wide directives, such as the Payment Services Directive 2 (PSD2).

Licenses Available

1. Payment Institution License: This license allows firms to provide payment services under the PSD2 framework, including money transfers, credit card processing, and remittance services. License holders benefit from EU passporting, which enables them to operate across all EU member states.
2. Electronic Money Institution (EMI) License: Companies issuing electronic money and handling payment services can apply for this license. EMIs can also benefit from EU passporting, providing significant expansion opportunities within the EU.
3. Small Payment Institution License: For smaller businesses or startups, this license offers a lighter regulatory burden, allowing them to provide payment services with limited volume restrictions.

Regulator: Central Bank of Cyprus (CBC)
The CBC is the primary regulator for payment services, ensuring that institutions comply with both domestic laws and EU directives. Cyprus benefits from the CBC’s expertise and alignment with EU financial regulations, making it a reliable jurisdiction for financial operations.