To open payment markets to non-bank fintech firms while protecting financial integrity, central banks implement structured Payment Service Provider (PSP) Licensing Matrices.
The Tiered Licensing Framework
The supervisory perimeter categorizes companies into strict regulatory tiers based on their operational activities and transaction volumes:
  Licensing Tier |   Permitted Operational Activities    |   Mandatory Compliance Control
-----------------+---------------------------------------+-----------------------------------------
  Tier 1: EMIs   | Issues digital e-money tokens & wallets| Requires 100% pre-funded trust accounts
  Tier 2: PSPs   | Processes electronic transactions only| Mandates standard data encryption rules
  Tier 3: PIs    | Initiates payment orders via bank APIs| Requires basic operational liability coverage

  • Electronic Money Issuers (EMIs): Authorized to issue digital value. They must hold 100% of consumer deposit balances in ring-fenced trust accounts at regulated commercial banks, completely isolated from corporate debts.
  • Payment Service Providers (PSPs): Authorized to route and process digital payments but cannot issue independent storage wallets or hold customer deposits
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