The passporting of its Electronic Money Institution (EMI) license in the European Economic Area (EEA) allows Quantoz Payments to operate and offer electronic money services across the EEA member states.
Passporting an Electronic Money Institution (EMI) license within the European Economic Area (EEA) is a regulatory mechanism that facilitates the cross-border operation of electronic money services.
The EEA consists of EU member states along with Iceland, Liechtenstein, and Norway, forming a single market for financial services. Passporting provisions allow EMIs to offer their services seamlessly across multiple EEA countries without needing individual approvals from each national regulatory authority.
To obtain an EMI license, a financial institution must comply with the regulatory standards set by the European Union or the relevant EEA member state. Once licensed, the institution can leverage passporting rights to extend its services to customers in other EEA jurisdictions.
Passporting eliminates the need for Quantoz Payments to navigate and adhere to distinct regulatory frameworks in each EEA country, reducing administrative burdens and associated costs. The process involved obtaining approval from the Dutch Central Bank, Quantoz Payment’s home country’s regulatory authority, which serves as a gateway for Quantoz Payments to operate in other EEA states. The host countries where Quantoz Payments can now offer its services recognize and accept the regulatory oversight exercised by the home country.
This approach fosters a more efficient and interconnected financial landscape within the EEA where EMIs can scale their operations, and consumers benefit from a broader range of electronic money services.