Until a few years ago, only the most advanced fintech entrepreneurs knew what a "payment system" was. Payment systems is a generic term referring to legal entities operating as:
- Electronic Money Institutions (EMIs)
- Small Payment Institutions
- Payment Service Providers
- Challenger Banks
- Microfinance Banks
- Money Service Businesses
all depending on the part of the world where they are licensed.
Payment systems like EMIs are particularly popular in Europe, where they compete on equal terms with banks and participate in the SEPA clearing system. The UK and Lithuania lead the field in the EMI business. Payment systems offer direct IBAN numbers. The major difference between a Payment System and a Bank is that banks are allowed to loan out money, while payment systems literally focus only on payments so they are not allowed to loan out client funds.
Today, businesses and individuals from all over the world are actively using payment systems for their international payment needs, no longer relying on traditional bricks and mortar banks. We are talking not only about well-known brands like PayPal, TransferWise or Venmo, but also about hundreds of other, much more boutique and specialized payment solutions that might be more suitable for offshore companies and international businesses.
In this section, we talk about what payment systems are, what benefits they offer, and of course how to open a foreign account.
If you are looking for answers to the following questions:
- What are the pros and cons of payment systems over bank accounts?
- How to find the best bank account alternative?
- How to open a corporate account for a non-resident or offshore company?
- How much does it cost to use a payment platform?
- How to send and receive money internationally?
then you will find the answers in our constantly growing selection of materials.
Also, the experts of the portal offer free advice on choosing the most suitable international payment system that is right for you or your business, based on your goals, turnovers, and transaction profile. This free consultation will save you time, nerves and money when it comes to searching out and selecting a suitable payment solution.
Below you will find the articles about payment systems most demanded by our readers.
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