The next logical step after the establishment of the company is to open a bank account and start working with customers. However, because banks have strict and demanding requirements for customers, especially if they plan to manage high-risk activities or the account owner is a non-resident, this can be a serious obstacle for some businesses. So after a long wait and a lot of paperwork, it often ends in a rejection.

The main differences between banking institutions and payment systems

■ License

Banking institutions and payment systems should be licensed to provide financial services. The payment system shall be accountable to the same national financial supervisory authority (e. g. the Bank of Lithuania) as the banking institution in its country of incorporation. In addition, the payment system must also be audited and develop strategies to ensure the safety and stability of customer e-money, which will comply with the regulations and requirements of regulatory agencies. Therefore, your funds are as safe in the payment system as they are in the bank.

■ Transaction

The payment system allows customers to hold funds in different currencies, so it is more advantageous for those who work for the international market. In addition, payment systems licensed in EU countries can usually enter the single euro payment area SEPA(Single Euro Payment Area).

■ Remote Program

In contrast to banks, the payment system does not require the customer to go to the institution in person, and the entire account opening process and the management of the account itself can be done completely remotely. Most payment systems provide their own applications, which are more convenient to use. In addition, the time required to transfer money via EMI or PSP is usually shorter than a bank transfer, which can take several days.

■Service

Banks can provide a wider range of services, including loans, deposits and investments, while payment systems focus on facilitating the transfer of funds from one party to another. The payment system is designed to be fast, efficient and secure, enabling people to quickly and easily transfer or shop between accounts.

■ High-risk activities

When opening accounts in banking institutions to operate high-risk businesses such as foreign exchange, gambling and cryptocurrency exchange, they often end up in failure because of the high requirements and regulations of banks. The chances of opening a merchant account in the payment system are much higher, because the various payment systems are designed for such purposes, and the onboarding process is easier and faster.

Benefits of the payment system:

■ IBAN on behalf of your company

■ Fully remote program

■ Can be used for high-risk activities

■ Convenient customer support

■ Safe and reliable

Which account do I need?

Our team of consultants will be happy to provide you with more information and help you make a decision!

Our team of consultants will be happy to provide you with more information and help you make a decision

Low-risk current accounts usually refer to accounts with a low likelihood of fraudulent or illegal activity, such as standard checking or savings accounts. These accounts are usually opened and maintained by individuals or businesses with a good credit history and a record of responsible banking activities.

A high-risk current account generally refers to any financial operation or transaction that may result in significant financial loss or damage the reputation of the payment system. Banks may conduct additional review and monitoring of high-risk accounts to ensure compliance with regulatory requirements and detect potential suspicious activity.

■ Gaming, online casinos, lotteries;

■ Issuance of electronic currency;

■ exchange of virtual assets;

■ Pharmaceutical and chemical business;

■ Alcohol and tobacco products.

Enterprise Account Opening Procedures

The procedures for opening an account on a payment system may vary and require customer involvement, but some general steps are provided below:

① Step-Pre-check

We provide our customers with internal pre-checks in order to select the best payment system according to customer requirements.

② STEP-Application

Once you have selected the perfect solution for your business, our compliance experts will work with you through the onboarding process.

③ STEP-File

It is necessary to prepare a set of corporate and personal documents.

④ Step-Approval

Once your application is reviewed, you may be asked to provide more information or receive a positive/negative response.

■ Documents

List of documents that may be requested

Company documents (articles of incorporation, registration card, etc.).

ID card or passport of the director and beneficiary.

Proof of address, such as utility bills or personal bank statements.

Other documents that explain the planned activities and business development.

If the company owns the website, it is necessary to provide proof of the domain name.

Other documents that may be related to your personal career.

■ Time frame

Time limits for establishing accounts

■ Preparations

How to prepare for entry?

Purpose: There are different types of accounts, and each account has its purpose. Do you need an account for equity contributions or for working with clients?

■ Currency: Decide which currency to use.

■ Geography: It's important to know in which region you want to do business.

■ Security: Depending on the activity, it may be necessary to provide methods to prevent fraud or anti-money laundering policies.