The Bank of Lithuania published its review of Lithuania’s electronic money institution (EMI) and payment institution (PI) sector, reporting strong 2024 growth alongside persistent market concentration and capital buffer concerns. Income from licensed activities rose 25% to EUR 622 million and the amount of payment transactions increased 33% to EUR 152 billion, while the top tenth of institutions continued to dominate both income and transaction volumes. All institutions met own funds requirements at year-end, but the central bank cautioned that operating close to the minimum threshold is not sustainable. The ten largest institutions generated nearly EUR 386 million, or more than 60% of sector income, and accounted for almost EUR 101 billion, or 66%, of the amount of payment transactions. Thirty institutions processed at least EUR 1 billion in payment transactions and, while representing about a quarter of market participants, accounted for 92% of total transaction volume. Customer funds held with central banks fell 26% year on year from EUR 912 million to EUR 671 million, while funds held with credit institutions increased 2.5 times to EUR 1.2 billion; EUR 742 million was invested in safe and liquid assets, up 36%. Supervisory and authorisation activity covered 119 licensed EMIs and PIs (76 EMIs and 43 PIs), including three new licences, two licence extensions, 12 authorised acquisitions (or holdings of shares), and nine licence revocations. The Bank of Lithuania conducted 15 targeted inspections and two in-depth analyses spanning AML/KYC, fraud risk management, own funds, safeguarding of customer funds, and internal audit and controls, resulting in 19 sanctions and 91 practice improvement notices, alongside 71 meetings with market participants and expanded public information on common operational deficiencies.
Bank of Lithuania 2025-03-24
Bank of Lithuania reports 2024 EMI and PI sector income up 25% to EUR 622 million and warns against thin own funds buffers
The Bank of Lithuania's review highlighted strong 2024 growth in the electronic money and payment institution sector, with income rising 25% to EUR 622 million and transactions increasing 33% to EUR 152 billion. Despite meeting own funds requirements, the central bank warned about operating near minimum thresholds. The review noted significant market concentration, with the top ten institutions generating over 60% of income and 66% of transaction volumes.