VILNIUS, Sept. 28 (Xinhua) -- The Lithuanian central bank on Thursday issued an e-money institution (EMI) license to a Singapore-based fintech startup Instarem to provide international money transfer services in the European Union (EU) from the Lithuanian capital Vilnius.
"AB Instarem EU informed the Bank of Lithuania of intending to perform credit transfers, money remittance services, open client accounts (eWallets), issue payment cards, and provide the possibility for ATM cash withdrawals," said the Bank of Lithuania in a statement.
The regulator noted that the company also plans to use access to the Bank of Lithuania payments infrastructure.
Instarem is a leading digital cross-border payments company with over 2 million transactions annually, according to Lithuania's investment promotion agency Invest Lithuania. The company is to invest around 3 million euros (3.5 million U.S. dollars) in its European operations over the next two years, said the agency.
"Our central operational headquarters for Europe and the North and South Americas will be based in Lithuania," Prajit Nanu, the co-founder and CEO of Instarem is quoted as saying in a press release from Invest Lithuania.
The news comes amid efforts of the Lithuanian central bank to establish the country as a hub for fintech companies by creating favorable regulatory environment.
"This year, 10 licenses were already issued for undertakings engaged in the provision of payment services, another 15 undertakings have applied to the Bank of Lithuania for licenses," said the country's central bank in a statement on Thursday.
Earlier this year, the Lithuanian regulator issued e-money institution license to Chinese fintech company IBS Lithuania, a branch of International Business Settlement Holdings Limited, allowing the company to issue and redeem electronic money, provide payment services across the European Union.
