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:
1. EMI for your main business account (receiving client payments, paying suppliers)
2. PSP for accepting card payments on your website
3. Bank for any credit facilities or large reserves
Use our [comparison tool](/compare) to evaluate providers side by side.
