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Top Electronic Money Institutions to Watch in 2023

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Electronic Money Institutions (EMIs) were at the center of payments innovation in 2023. Amid a tougher funding climate and heightened supervision, the strongest players doubled down on profitability, real-time payouts, compliance-by-design, and embedded finance. Below we analyze the EMIs that most shaped 2023, why they mattered, and what their news means for operators, marketplaces, and fintech partners.

Why 2023 Mattered for EMIs

Two forces defined the year. First, an earnings pivot: rising rates and scale advantages allowed leading EMIs to translate balances and volumes into sustainable income. Second, a regulatory reset: supervisors tightened expectations around safeguarding, AML/KYC, outsourcing/agents, and consumer outcomes—culminating in the UK’s new framework to reimburse victims of authorised push payment (APP) fraud via Faster Payments, with policy decisions crystallizing in 2023 and implementation following thereafter. ([psr.org.uk](https://www.psr.org.uk/publications/policy-statements/ps233-fighting-authorised-push-payment-fraud-a-new-reimbursement-requirement/?utm_source=openai))

How We Picked the EMIs to Watch

Our selection emphasizes: (1) material 2023 milestones (licenses, results, expansions, risk events); (2) structural capabilities (real-time rails, multicurrency accounts, card issuing, embedded finance); and (3) regulatory posture and operational resilience.

Top EMIs to Watch in 2023

Wise

Wise’s FY2023 preliminary results (year ended 31 March 2023) showcased the power of scale plus rates: income rose 73% to £964.2m, with interest income jumping from £3.9m to £140.2m as customer balances grew. The model—low-cost cross-border plus an increasingly feature‑rich account—kept gross margin steady at 66% while funding more product and ops capacity. For 2023 watchers, Wise set the benchmark for profitable growth with disciplined pricing and faster payouts. ([lse.co.uk](https://www.lse.co.uk/rns/WISE/wise-plc-preliminary-results-fy-end-31-march-2023-5o86chx5iaipw4x.html?utm_source=openai))

Revolut

Revolut’s 2023 financials, published in mid‑2024, confirmed the narrative many anticipated throughout 2023: scale across cards, FX, subscriptions, and interest income translated into record revenue and profit for the 2023 year, even as the firm operated as an EMI in several markets. This validated the “super‑app” thesis under stricter controls and a higher-rate regime. ([revolut.com](https://www.revolut.com/en-US/news/revolut_s_revenues_surpass_2_2bn_with_record_profits_of_545m_in_2023/?utm_source=openai))

Payoneer

In February 2023, Payoneer secured an FCA e‑money license for its UK subsidiary—critical for continuity and expansion post‑Brexit. Later results showed 2023 as a year of expanding profitability and >30% revenue growth, underscoring its role as an SME‑first global payouts platform. Together, these milestones cemented Payoneer’s place among EMIs marrying compliance breadth with marketplace and freelancer demand. ([investor.payoneer.com](https://investor.payoneer.com/news-releases/news-release-details/payoneer-receives-uk-e-money-license-financial-conduct-authority?utm_source=openai))

Airwallex

Airwallex entered 2023 with established EMI permissions (FCA in the UK and DNB in the Netherlands), leveraging a modern treasury and embedded finance stack for global businesses. While not every 2023 headline was about new licenses, the company’s licensing footprint remained a differentiator for merchants seeking multi‑market accounts, collections, and issuance under a single platform. ([help.airwallex.com](https://help.airwallex.com/hc/en-gb/articles/900001757106-How-is-Airwallex-licensed-and-regulated?utm_source=openai))

Stripe Technology Europe (STEL)

Stripe’s Irish entity, STEL, continued to anchor EU service provision as a fully authorized EMI, passporting across the EEA. For platforms rolling out marketplaces, card issuing, and Connect‑style flows in 2023, STEL’s regulatory status enabled scale with robust controls and European coverage. ([registers.centralbank.ie](https://registers.centralbank.ie/FirmDataPage.aspx?firmReferenceNumber=C187865&utm_source=openai))

Nium

Nium spent 2023 building out bank‑grade, real‑time cross‑border infrastructure for institutions and platforms—expanding zero‑deduction wires and SWIFT gpi tracking early in the year. Its focus on payout transparency and speed aligned well with the 2023 shift to resilient, traceable B2B money movement. ([prnewswire.com](https://www.prnewswire.com/news-releases/nium-expands-payments-platform-with-zero-deduction-wire-transfers-for-payroll-and-procurement-301740917.html?utm_source=openai))

Paysera

From its Lithuanian base, Paysera posted solid 2023 profitability while processing more e‑commerce payments and holding higher client balances—signaling disciplined growth in a year when many EMIs chased efficiency. For merchants operating in the Baltics and beyond, the firm’s combination of local expertise and multicurrency rails made it one to watch. ([paysera.com](https://www.paysera.com/v2/en-GB/blog/profit-paysera-2023?utm_source=openai))

Modulr

Modulr, a core “payments‑as‑a‑service” provider and EMI partner to many fintechs, agreed with the FCA in October 2023 to pause onboarding some new partner segments while it worked through evolving requirements. The episode highlighted the 2023 theme: operational readiness and regulatory change management are now competitive advantages; firms that respond quickly emerge stronger. ([sifted.eu](https://sifted.eu/articles/fca-customer-onboarding-restrictions-modulr?utm_source=openai))

Viva Wallet

Viva Wallet spent 2023 integrating a major strategic investor’s backing from late 2022, scaling omnichannel acquiring for European SMBs. Its combination of acquiring, accounts, and value‑added services—plus the strategic tie‑up—kept Viva on the radar as a pan‑EU merchant champion through 2023. ([jpmorgan.com](https://www.jpmorgan.com/insights/payments/trends-innovation/jpmorgan-closes-viva-wallet-deal?utm_source=openai))

Regulation Reset: What Changed in 2023

Supervisors sharpened expectations on safeguarding, agent/distributor oversight, and AML. In the UK, the Payment Systems Regulator finalized policy decisions toward mandatory reimbursement for APP fraud via Faster Payments—directly affecting banks and EMIs that are FPS participants or provide relevant accounts. Operationally, this pushed 2023 roadmaps toward enhanced fraud controls, data‑sharing, and receiving‑bank controls. ([psr.org.uk](https://www.psr.org.uk/publications/policy-statements/ps233-fighting-authorised-push-payment-fraud-a-new-reimbursement-requirement/?utm_source=openai))

Risk Case Studies: Lessons From Enforcement

PayrNet (Railsr group) in Lithuania

In June 2023, the Bank of Lithuania revoked UAB PayrNet’s EMI license for serious and systemic breaches, initiating bankruptcy proceedings and triggering an orderly return of customer funds. For the wider sector, this case underscored the need for continuous oversight of agents/distributors and robust safeguarding/AML controls—especially in BaaS models. ([lb.lt](https://www.lb.lt/en/news/licence-of-uab-payrnet-revoked-for-serious-violations-bankruptcy-proceedings-to-be-initiated?utm_source=openai))

Transactive Systems UAB

Also in 2023, Lithuania revoked Transactive Systems UAB’s EMI license and levied fines over AML/CTF failings, reinforcing that rapid growth without proportionate monitoring exposes EMIs to existential regulatory risk. ([finextra.com](https://www.finextra.com/newsarticle/42403/lithuania-revokes-transactive-systems-uabs-licence-over-aml-failures?utm_source=openai))

Operator Playbook: How to Evaluate EMIs Post‑2023

  • Licensing scope and passporting: confirm EMI permissions, market coverage, and scheme access (e.g., Faster Payments, SEPA, local real-time rails).

  • Fraud liability and reimbursement: assess controls and APP‑fraud reimbursement readiness, particularly for UK‑exposed flows. ([psr.org.uk](https://www.psr.org.uk/publications/policy-statements/ps233-fighting-authorised-push-payment-fraud-a-new-reimbursement-requirement/?utm_source=openai))

  • Safeguarding and treasury: understand safeguarding banks, diversification, and investment policies for safeguarded funds.

  • Outsourcing/agents: demand evidence of agent/DD oversight, transaction monitoring, and audit trails.

  • Operational resilience: review SLAs, incident history, and playbooks for scheme or partner outages.

Mini‑Interview: 3 Questions With a Marketplace Payments Lead

Q1. What changed about EMI selection in 2023?

A: We prioritized operational transparency—daily safeguarding attestations, real‑time reconciliation, and clear exposure to APP‑fraud reimbursement rules. “Show me the control” beat glossy decks.

Q2. Did you diversify providers?

A: Yes—dual‑provider setups for critical corridors. We also added a specialist for on‑platform seller payouts to reduce treasury friction and speed settlement.

Q3. Biggest surprise?

A: Interest income dynamics. EMIs with strong balance products funded roadmap acceleration without sacrificing unit economics.

FAQ

What’s the difference between an EMI and a bank?

EMIs can issue e‑money and provide specified payment services but generally cannot take deposits or lend using safeguarded customer funds. They must segregate customer money and meet strict safeguarding and AML/CTF rules.

Why did Lithuania feature so often in 2023 news?

It’s a major EU hub for EMIs. The regulator applied assertive supervision and enforcement, making the market a bellwether for EU‑wide standards. ([lb.lt](https://www.lb.lt/en/news/licence-of-uab-payrnet-revoked-for-serious-violations-bankruptcy-proceedings-to-be-initiated?utm_source=openai))

What should we watch after 2023?

Ongoing fraud‑reimbursement implementation in the UK, cross‑border real‑time rails expansion, more stringent outsourcing/agent oversight, and continued emphasis on profitability.

Vendor Shortlist and Practical Next Steps

If you’re mapping payout partners and EMI coverage, build a comparison that includes license per entity, supported rails, reconciliation tooling, fraud reimbursement posture, and SLAs. For a practical directory and benchmarking starting point, see WirePayouts for payout infrastructure research and vendor discovery.

wirepayouts.com

Related searches

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  • UK APP fraud reimbursement rules Faster Payments 2023

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References

electronic money institution