eGaming Companies are shifting to EMI services

eGaming operators are increasingly shifting their banking services over into Electronic Money Institutions (EMIs) across Europe. One of the main reasons for this is the attitude of conservative institutional banks that categorize eGaming as high-risk business and refuse to offer their services.

An EMI service is a great alternative to traditional banks. They are fully transparent, licensed financial institutions that can provide a wide range of banking services to third parties. Generally, they can open an account faster with less documentations and with all the processes conducted online. Most importantly, the EMI can work within the EU-wide IBAN account identification system and enable sending and receiving of payments through the automated bank transfer network.

By definition EMI services are designed to suit companies like eGaming operators which depend on electronic money transfers, and all the infrastructure around them. Comprehensive licensing of EMI companies and services is required and the terms of license and operation are defined by each country that issues the license.

One disadvantage of EMI accounts is that they do not carry the European Deposit Insurance Scheme deposit guarantees, which normally insures funds on deposit up to €100,000. As well, there may be a concern depending on the country in which the bank is registered, since it may be that money transfers can be restricted to particular jurisdictions and particular currencies. Naturally, the eGaming operators will ensure that the ENI chosen can fully service their own expected needs.