The Alphabet Soup of Financial Services
If you've been researching financial services for your business, you've likely encountered a bewildering array of acronyms: PSP, EMI, MSB, VASP, PI. What do they all mean, and which one does your business actually need?
This guide cuts through the confusion.
Payment Service Provider (PSP)
A PSP enables businesses to accept payments from customers. When you add a payment button to your website, you're using a PSP.
What PSPs do:
- Process credit and debit card payments
- Handle payment gateway integration
- Manage fraud detection and chargebacks
- Support alternative payment methods (PayPal, Apple Pay, etc.)
What PSPs don't do:
- Hold your money long-term
- Provide IBANs for receiving bank transfers
- Offer multi-currency accounts
Best for: E-commerce businesses, SaaS companies, marketplaces — anyone who needs to accept payments from customers.
Examples: Stripe, Adyen, Checkout.com, Nuvei
Electronic Money Institution (EMI)
An EMI is a regulated entity that can issue electronic money and provide payment accounts. Think of it as a digital bank without a full banking license.
What EMIs do:
- Issue IBANs (your own account number)
- Hold funds on your behalf
- Send and receive SEPA/SWIFT transfers
- Issue payment cards (debit/prepaid)
- Provide multi-currency accounts
What EMIs don't do:
- Lend money (no loans or overdrafts)
- Offer interest on deposits
- Provide the same deposit protection as banks (though some have voluntary schemes)
Best for: Businesses that need a business account but don't qualify for or don't want a traditional bank account.
Examples: Paysera, Wise Business, Genome, Nexpay
Traditional Bank
A bank holds a full banking license and can do everything an EMI can do, plus more.
What banks do:
- Everything an EMI does
- Lend money (business loans, credit lines)
- Offer interest on deposits
- Provide deposit protection (up to €100,000 in the EU)
- Offer trade finance, letters of credit
The catch: Banks are slower to onboard, more expensive, and often require local presence or strong existing relationships.
Best for: Established businesses with significant assets, businesses needing credit facilities, businesses in regulated industries requiring bank-level trust.
Quick Decision Guide
| Need | Best Option |
|---|---|
| Accept card payments online | PSP |
| Business account with IBAN | EMI |
| Multi-currency operations | EMI |
| Business loans | Bank |
| Deposit protection | Bank |
| Fast onboarding | EMI |
| Crypto-friendly | Specialist EMI |
| iGaming payments | Specialist PSP |
Can You Use Multiple?
Absolutely — and most businesses do. A common setup:
- EMI for your main business account (receiving client payments, paying suppliers)
- PSP for accepting card payments on your website
- Bank for any credit facilities or large reserves
Use our comparison tool to evaluate providers side by side.
