Overview
Spain’s regulatory framework for payment services is aligned with European Union directives, particularly the Payment Services Directive 2 (PSD2). The Bank of Spain (Banco de España) oversees the licensing and supervision of payment service providers, ensuring a stable and well-regulated financial environment for both domestic and international companies.

Licenses Available

1. Payment Institution License: Companies offering services like money transfers, payment processing, and remittances must obtain this license. The license allows providers to operate across the EU, leveraging the passporting rights under PSD2 to expand into other member states.
2. Electronic Money Institution (EMI) License: Firms that issue electronic money, such as prepaid cards or digital wallets, are required to obtain an EMI license. Like the Payment Institution License, it also grants access to EU markets through passporting.
3. Small Payment Institution License: For smaller companies or startups, this license offers a more flexible, lower-cost option for providing payment services under certain thresholds, with reduced regulatory obligations.

Regulator: Bank of Spain (Banco de España)
The Bank of Spain is the primary regulator for payment services in the country. It ensures compliance with domestic regulations as well as EU laws, such as PSD2 and the Anti-Money Laundering Directives. The Bank of Spain has a solid reputation for maintaining transparency and regulatory clarity, which helps create a secure financial environment for businesses operating in the country.