The number of Payment Server Providers (PSPs) licensed in Malta has seen significant growth over the last few years, and, alongside the thriving i-Gaming and e-Commerce industry, the Island has become the destination of choice for the set-up of Payment Server Providers.
PSPs may engage in various activities including: the execution of payment transactions, issuing and/ or acquiring of payment instruments, as well as money remittance.
Like other financial institutions, PSPs are not allowed to receive deposits or other repayable funds from the public and must use funds exclusively to provide payment services.
PSPs are regulated in Malta under the Malta Financial Institutions Act (the “Act”) which transposes the Payment Services Directive (the “Directive”), specifically under Schedule II of this Act. Such licence holders are authorized and regulated by the Malta Financial Services Authority (the “MFSA”), the supervisor of all the financial services industry.