Electronic money institutions

An electronic money institution (EMI) is a legal entity having its registered office in the territory of the Slovak Republic that is authorised to issue electronic money, administer electronic money and conduct payment operations related to the issue of electronic money. Apart from the issuance and administration of electronic money, an electronic money institution shall be entitled to engage in activities such as business activities, but it cannot receive deposits. It is subject to conditions and stipulations of the Payment Services Act. Based on the notification delivered to the National Bank of Slovakia it can operate in the whole European Economic Area.

An Electronic money institution is entitled to provide all types of payment services which are listed in its authorization for the provision of payment services, whereas a payment institution is entitled to provide only payment services and cannot provide electronic money.

An Electronic money institution cannot issue electronic money via other persons.

An Electronic money institution is entitled to issue and redeem electronic money via other persons (so-called distributors) acting on their behalf or based on a written contract.

Electronic money means electronically including magnetically stored monetary value as represented by a financial claim on the electronic money issuer which is issued on receipt of funds to make payment transactions and which, based on a contract, is accepted by a person other than the electronic money issuer.

Only entities with authorization to issue electronic money enlisted in the table below together with selected requirements for their business, shall issue and manage electronic money.

An electronic money institution which is authorized by another National Competent Authority in the European Economic Area (EEA) shall be entitled to issue and administer electronic money in the Slovak Republic. The electronic money institution shall provide payment services in the EEA through agents of payment services based on a written agreement if it disposes of authorization for the provision of payment services. Below are summarized different forms according to which an electronic money institution shall operate in the Slovak Republic:

An electronic money institution without a limited extent is also entitled to provide services in another member state via its branch or without establishment of its branch based on free provision of services. A branch means, for the purposes of this Act, an organisational unit of a payment institution or electronic money institution situated within or outside the territory of the Slovak Republic.