5 key takeaways
- Passporting an existing EU EMI or payment institution licence into Poland is almost always faster than obtaining a standalone Polish licence, and is the right default for companies already licensed elsewhere in the EU/EEA
- A standalone Polish EMI licence becomes the better option when the business needs its own balance sheet presence in Poland, local operational substance, or when Poland is the company’s primary or only EU market
- Passporting has real limits: the passported entity remains supervised primarily by its home-state regulator, and KNF’s role is more limited than it would be for a directly licensed Polish entity — this affects how disputes, inspections and local regulatory relationships actually work in practice
- Common gap: companies choose passporting purely to save time, without considering that KNF and Polish counterparties (banks, payment schemes, enterprise clients) sometimes treat a directly licensed Polish EMI as a stronger signal of local commitment than a passported foreign entity – this can matter commercially, not just legally
- Regulatory scrutiny of “letter-box” licences – EU licences obtained mainly to access the passport with minimal genuine activity in the home state – has increased, which affects how safely a passporting strategy can be relied upon long-term
“Should we passport or get our own Polish EMI licence?” is one of the most common strategic questions I help clients work through. The right answer depends less on legal technicalities and more on what kind of business you’re building in Poland.
Polish EMI Licence vs Passporting: The Decision Framework
| Factor | Favours passporting | Favours a Polish EMI licence |
|---|---|---|
| Speed to market | Faster – no new licensing process | Slower – full application and review |
| Where the EU business is concentrated | Poland is one of several EU markets | Poland is the primary or only market |
| Need for local banking/operational relationships | Lower – can often be managed centrally | Higher – local presence eases banking and partner relationships |
| Regulatory relationship | Home-state regulator remains primary supervisor | KNF is the direct primary supervisor |
| Perception with Polish B2B counterparties | Can be seen as less committed to the local market | Often seen as a stronger local commitment signal |
| Long-term cost | Lower upfront cost, ongoing home-state compliance | Higher upfront cost, but full control over the licence |
Common gap: treating this purely as a cost-and-speed decision. For fintechs whose customers are Polish enterprises or public-sector bodies, the perception of a directly licensed Polish entity can materially affect sales cycles, independent of the legal equivalence between a passported and directly licensed EMI.
When Passporting Genuinely Works Well
Passporting is well suited to companies that already hold a genuine, operationally substantive EMI or payment institution licence in another EU/EEA state and are expanding into Poland as one of several EU markets, rather than treating Poland as their primary base. The home-state licence needs to reflect real management, governance and activity – not simply be a jurisdiction chosen for licensing convenience.
When a Standalone Polish EMI Licence Makes More Sense
- Poland is your primary or only EU market, and you want a direct, ongoing relationship with your actual supervisor rather than a home-state regulator elsewhere
- You need local banking relationships that are easier to establish with a Polish-licensed entity than a foreign passported one
- Your target customers are Polish enterprises, banks or public-sector bodies who may weight local licensing status in their vendor due diligence
- You want full control over your licence conditions, rather than being bound by the scope and conditions negotiated by your licence in another member state
Frequently Asked Questions
Is a passported EMI licence legally equivalent to a Polish EMI licence?
In terms of the services that can be provided, yes – passporting is designed to give EU-wide market access on the basis of a single home-state licence. The practical difference lies in supervision (home-state regulator vs KNF directly) and how Polish counterparties may perceive the two options commercially.
Can a company switch from passporting to a standalone Polish licence later?
Yes, and this is a common growth path – companies often start with passporting to test the Polish market quickly, then apply for a standalone Polish EMI licence once volume and local presence justify the investment.
Does KNF have any supervisory role over a passported EMI operating in Poland?
KNF retains a more limited “host state” supervisory role over passported entities, focused primarily on conduct-of-business matters in Poland, while prudential supervision remains with the home-state regulator.
What is a “letter-box” licence and why does it matter for passporting strategy?
A letter-box licence refers to an EU licence obtained in a jurisdiction with minimal genuine operational substance, used mainly to access the EU passport. Regulators across the EU, including in the licensing home states commonly used for this purpose, have increased scrutiny of this practice – which means a passporting strategy built on a thin home-state presence carries more long-term regulatory risk than it may have a few years ago.
How to Decide
- Map where your actual and planned EU customer base sits — is Poland one market among several, or the centre of gravity?
- Assess how your target Polish customers (especially enterprise or public sector) weigh local licensing in procurement and due diligence
- Evaluate the operational substance of your existing EU licence, if any, against current regulatory expectations
- Model the realistic cost and timeline difference between passporting now and a standalone licence later, rather than treating it as a one-off, permanent decision
If you’re weighing passporting against a standalone Polish EMI licence, get in touch to talk through your specific business model. For more, see EMI vs KIP — Which Payment Licence Do You Need in Poland? and PSD3 and What It Means for Polish Payment Institutions.
Related posts:
- EMI vs KIP — Which Payment Licence Do You Need in Poland?
- PSD3 and What It Means for Polish Payment Institutions: EMI, PI and What Changes
- KNF Licensing in Poland: A Practical Guide for Fintech Companies
Katarzyna Szczudlik is a Partner at Schoenherr in Warsaw and a fintech lawyer in Poland, ranked by Chambers & Partners and Legal 500. She advises payment institutions and EMIs on Polish and EU licensing strategy, including passporting decisions. Get in touch.
