Comparing EMIs and Klarpay AG

When it comes to financial technology, it can be an incredibly complex undertaking to stay informed of the various institutions and regulations that govern the industry. To make it easier to comprehend, this post will make a comparison between one of the most common, contemporary types of financial institutions - the electronic money institute (EMI) - and our company Klarpay AG.?

By examining their differences as well as their similarities, it is our hope that you can better understand the landscape of financial technology and make more informed decisions.?

Despite their differences in origin, both institutions have the same main objective: to provide secure, reliable, and convenient financial services to their customers. As far as their services and operations go, they also share some similarities. Both EMIs and Klarpay AG offer various payment solutions and financial tools, such as mobile banking, payment cards, virtual IBAN accounts and cross-border payments. In addition, they both have their own set of rules, regulations, and laws that govern their operations and protect their customers.

Electronic Money Institute (EMI)

The EMIs were established in the late 90s but really came into popularity with recent changes to EU directives like the PSD2 with the intention of creating a secure and reliable framework for electronic payments and money transfers. EMIs are a type of financial institution that allows for the safekeeping and transfer of funds but without the need of a credit insitution. EMIs are regulated by the financial regulator in the country they're located in and have to abide by similar rules and regulations as banks. EMIs are usually used for payments, but they can also provide services such as payment processing, currency conversion, and money transfers.

About Klarpay AG

Klarpay AG is a financial institution based in Switzerland. It was founded in 2019 with the goal of providing an innovative, user-friendly platform for businesses to manage their transactions. Klarpay AG is authorised by the Swiss Financial Market Supervisory Authority (FINMA) under the Swiss Federal Banking Act, Article 1b. This allows it to provide services such as payment processing, currency conversion, cross-border payment and money transfers including cross-border payments. Klarpay AG is also able to provide digital transaction services, such as SWIFT and SEPA transfers and accounts in Switzerland with a Swiss IBAN in multiple currencies, corporate expense debit cards, and mobile payments.

Differences

EMIs are limited to electronic money while Klarpay AG can provide full deposit taking services . Klarpay AG is also regulated by FINMA, which has stricter rules than the some financial regulators of an EMIs. Other than IBAN solutions of EMIs, Klarpay’s IBAN accounts are named and FINMA regulated. Klarpay is also principle SWIFT member (with own BIC code) and a VISA principle member too.

Conclusion

EMIs and Klarpay AG are both financial institutions, but Klarpay AG stands out from EMIs due to its additional services, such as deposit taking and international transactional capabilities, which enables customers to receive and send their funds from their own accounts and manage their finances more conveniently. Furthermore, Klarpay AG is regulated by FINMA, which is the Swiss financial regulator, and has often stricter rules, regulations and audit requirements when compared to other? regulator of an EMIs. This provides customers with an extra layer of security and peace of mind that their funds are protected and secure.