In Lithuania, debit cards definitely dominate the financial sector. More than 80% of the country’s customers use credit cards as a primary payment method. Apart from domestic financial institutions, Swedish banks actively work in the Baltic country.
In addition to credit cards, various electronic wallets, digital coins are actively used to pay for goods online or accept business payments. Rely on user reviews to choose from payment service providers Lithuania.
Why choose Lithuania for payment system accounts
This Eastern European country is very favorable for modern online businesses. It caters to cutting-edge fintech technology and has already gained the reputation of a European fintech capital. That became especially evident after Brexit. The event somehow disrupted the EU economy but simultaneously gave new opportunities. In particular, it gave birth to new fintech startups in Eastern Europe.
For the last time, the Lithuania economy has grown 7 times. It welcomes innovative business solutions and creates attractive conditions for new fintech companies. Maybe you are one of those seeking a cozy haven for your business here, so your interest in opening a Lithuania payment system is quite natural.
Let’s view other benefits of payment system setup Lithuania:
- Tax incentives: Here you can count on numerous tax incentives for your business that can make your undertaking potentially lucrative.
- Innovations and flexibility: The local bureaucracy doesn’t justify its name because it’s not bureaucracy in the negative sense of this word. It welcomes the rapid development of the fintech industry and provides favorable conditions for innovative startups.
- Suitable legislation for businesses: Lithuania offers favorable and transparent conditions for fintech firms. The country’s major bank welcomes electronic payment solutions.
- SEPA: Since Lithuania is an EU country, you can enjoy the benefits of using SEPA or Single EU Payments Area. That allows making transfers within the currency bloc with no hassle.
- Ultimate security: It’s ensured by the country’s major bank.
Overview of licensing and regulatory requirements
It is possible to cope with a payment system setup Lithuania for five days or even earlier. If you represent a financial institution or non-EU resident, it might take longer and require extra documents.
You will require proving your address to open a payment account. Alternatively, you can come up with an account statement. Some payment providers permit to start accounts by merely submitting home country utility bills. Use this opportunity but ensure your bill is not older than 3 months.
Lithuanian banks charge fees for operations. Business accounts may shell out up 1,000 euros one time. If you are a non-resident, a minimal fee will amount to 50 euros. You may count on smaller fees with an EU citizenship.
Step-by-step guide to opening an account
It would be logical to start the procedure by collecting all the necessary documents. Make sure that the documents provided don’t violate KYC/AML standards. Don’t forget that your company needs to be registered in this Baltic country.
Then, pick up a suitable Lithuanian payment provider. Have your application submitted. Your data will naturally require verification. There’s nothing to fear if you are attentive and hide none of the crucial details.
If you cope with everything mentioned above, use your newly-created payment account.
Key documents required for the application
As you see, it’s not a very difficult undertaking to open a payment account here, but it’s impossible if you lack crucial documents. It’s up to you to collect the following ones.
Proof of income: You can prove your official employment. For instance, you can submit an employment letter or your salary statement. If you are not just an individual but act on behalf of a company, you need to prove your business. For this purpose, you can submit your business registration certificate or business license.
- Account statement: Payment providers often ask for this document. That’s a common way to have your customer information verified.
- Proof of residency/address: You can provide your utility bill. As a rule, such bills come with an actual address that acts as the ultimate proof of your personality.
- ID documents: Submit your valid identification documents. It might be your residence permit or passport.
As told above many payment providers and banks ask for extra documents. Therefore, be ready to submit that crucial stuff upon their request.
Compliance and reporting obligations after setup
In banking, compliance means following rules, policies, guidelines, regulations, and so on. Of course, here we mean obligations on the part of the customer, namely, you. Despite Lithuania is a democratic state and therefore adheres to democratic values and respects human rights, but anyway absolute freedom in the financial world is impossible. That’s true for any country today.
You are free to do whatever you want in your newly-created payment system account but you are not allowed to do what contradicts KYC/KYB or AML rules. Yeah, banks have to know their clients and, in particular, their transactions.
When you are on the stage of opening payment account Lithuania, you agree with it. You disclose crucial information and verify your income. Despite banks should protect the confidentiality of their customers’ transactions and other data related to them, it all can be revealed once something criminal shows up. As a result, your confidential information can be transferred to a court.
You may use various electronic payment systems or popular crypto solutions but sooner or later you will have to make a withdrawal and that’s when banking compliance kicks in. On the other hand, if you don’t break the law, you got nothing to worry about.
If you are not just an individual but running a business, reporting is inevitable here. The Lithuania payment regulations might require corresponding annual reports from you. Then, the Legal Entities Register absorbs this information. As a rule, such reports include a balance sheet, cash flow statements, and changes in your equity, not to mention your management report.