A branded wallet needs a regulated provider, a defined role for the fintech and customer terms that match the product. A principal-and-agent review establishes which entity can perform each activity, what must happen before launch and how customers can leave the programme.
This service is for fintechs established outside the UK or European Economic Area (EEA) planning UK or Irish payment services through a principal. The scope covers role selection, principal due diligence, the programme agreement and the permitted customer journey. Ireland supplies the EU comparison; expansion into another member state needs its own destination check.
Choose the role that matches the product
Start with the customer’s claim. Identify who promises to execute payments and who owes repayment or redemption of a balance. Then map who receives instructions, controls execution and handles funds. Branding and a revenue share do not settle those questions.
- A payment services agent supplies specified payment services on the principal’s behalf. Its appointment must cover the actual activity, and the required registration must precede that activity.
- An e-money distributor distributes or redeems the principal’s e-money. The EMI remains the issuer: neither UK nor Irish rules permit it to issue through a distributor or agent.
- An outsourced provider performs agreed operational functions under the principal’s control. A technical supplier can support payments without possessing transferred funds, but the technical exclusion does not cover payment initiation or account information services.
- An own-permission model is needed where the fintech undertakes regulated services as principal within the relevant territorial scope and no exclusion applies. A partner’s permission cannot authorise that independent business.
These roles can overlap. A distributor that also supplies payment services may need agent registration. A technical supplier can also be an outsourcer. The contract and product permissions must reflect each function. (UK Payment Services Regulations 2017, SI 2017/752, regs. 2, 34 and 138 and sch. 1, para. 2(j); Electronic Money Regulations 2011, SI 2011/99, reg. 33; Irish S.I. No. 6/2018, regs. 4 and 30; S.I. No. 183/2011, regs. 20–22.)
A displayed wallet balance does not, by itself, establish e-money issuance. The legal claim and payment functions determine whether the principal needs EMI or payment-institution permissions. The payment and e-money licensing service addresses the separate decision to obtain an institution’s own authorisation. (Directive 2009/110/EC, art. 2(2); Case C-661/22, ABC Projektai, EU:C:2024:148, paras. 43–49.)
Establish separate UK and Irish routes
For UK payment agency, the principal applies to register the fintech with the Financial Conduct Authority (FCA). The agent’s payment services cannot start merely because the parties have signed or submitted an application. The permitted services and effective register entry must match the launch. A genuine distributor needs no separate agent registration, but the principal must address the applicable notifications. Adding payment services changes that analysis. (SI 2017/752, reg. 34; SI 2011/99, regs. 26 and 33–34; FCA PERG 3A.4, Q22.)
The Irish route uses a principal authorised by the Central Bank of Ireland (CBI) for the proposed services. Identify the entity that will act for it. The CBI must enter a payment agent in the register before it starts. Distribution-only activity follows the CBI’s separate distributor notification process. Irish law requires at least 30 days’ prior notification of proposed outsourcing of an operational function relating to payment or e-money services. A notification is distinct from permission to perform a different regulated activity. (S.I. No. 6/2018, reg. 30(3), (7)–(10); S.I. No. 183/2011, regs. 20–22; CBI, Domestic Distributor Notification Form.)
An Irish principal’s EEA expansion requires the relevant passport notifications and host-state arrangements. A UK authorisation supplies no EEA passport. For a non-EEA fintech, settle the proposed agent’s location and supervisory arrangements before committing to the structure. Incorporating a local subsidiary does not complete registration or authorisation. The country where staff perform payment functions also needs a separate perimeter assessment. (S.I. No. 6/2018, regs. 37–38; S.I. No. 183/2011, reg. 26; Directive (EU) 2015/2366, arts. 11 and 28.)
Allocate customer contracts and funds
The proposed customer journey places the regulated-service contract with the principal. The fintech’s screens identify that provider and explain any agency relationship before acceptance. Separate app services and their fees need their own clear allocation. Customer money should enter the principal’s approved collection and safeguarding arrangements, with the fintech’s revenue paid separately.
The fintech can collect onboarding information and provide first-line support within its assigned role. The principal retains responsibility for its agents and outsourced operations. Allocate customer acceptance, financial-crime checks, payment decisions, complaints and record access in a written responsibility schedule. Delegation must leave the principal able to supervise and meet its own duties. (SI 2017/752, regs. 34(16) and 36; SI 2011/99, reg. 36; S.I. No. 6/2018, regs. 30–31; S.I. No. 183/2011, regs. 22 and 24.)
Safeguarding needs operational evidence: designated accounts, entitlement records, reconciliation and a recovery plan. Applicable FCA safeguarding and resolution-pack rules have applied since 7 May 2026. Irish duties follow the amended national rules. Safeguarding does not turn a customer’s e-money claim into an insured bank deposit. (FCA Handbook, CASS 15.1.2R–15.1.3R and 10A.2.1R; SI 2017/752, reg. 23; SI 2011/99, regs. 20–22; S.I. No. 6/2018, reg. 17; S.I. No. 183/2011, regs. 28(2) and 29; FCA, Using payment service providers, 8 January 2026.)
Review the principal and the programme agreement
Check the principal’s legal entity, authorised services, restrictions, agent arrangements and target-market coverage. Review safeguarding evidence and the operational dependencies that could interrupt customer access. The principal will also need evidence of the fintech’s ownership, management suitability, controls and proposed services for the agent application.
The agreement review covers:
- The permitted activities, territories and limits on the fintech’s authority, including changes that require a fresh review.
- Provider identification, branding approval, customer disclosures, charges and the treatment of programme revenue.
- Onboarding, monitoring, complaints, incidents and the records each party must produce.
- Data roles, international transfers, subcontracting and access for the principal, its auditors and regulators.
- Liability allocation, suspension triggers, termination, continuing customer service and funded transition assistance.
Some provisions implement statutory duties; commercial notice periods, fees and liability caps require negotiation. An indemnity cannot remove the principal’s regulatory responsibility. For an Irish principal’s ICT arrangements, the Digital Operational Resilience Act adds contractual and exit requirements, with further provisions for services supporting critical or important functions. (SI 2017/752, regs. 25, 34 and 36; S.I. No. 6/2018, regs. 30–31; Regulation (EU) 2022/2554, arts. 28–30.)
Complete the launch sequence and plan the exit
The review produces an actor map and role-selection decision path, a principal-and-fintech responsibility schedule, an agreement issue list and a launch-readiness document list. It also marks the product screens and operational powers that must change before release.
Work proceeds through four stages:
- Map the entities, customer claims, payment instructions, funds and operating countries. Select the legal role for each function.
- Check the principal and negotiate the programme terms, customer terms and data arrangements.
- Complete the required registrations and notifications. Test the customer journey against the approved allocation of authority.
- Assemble the launch evidence and confirm that every relevant condition is satisfied before enabling the activity.
Plan termination before accepting customers. For covered indefinite payment contracts entered into on or after 28 April 2026, UK provider termination generally requires 90 days’ notice. Ireland generally requires at least two months where the contract permits provider termination. Statutory exceptions and permitted business-customer opt-outs need separate treatment. A shorter programme notice does not remove customer rights. (SI 2017/752, regs. 40 and 51A–51D; S.I. No. 6/2018, regs. 62 and 79.)
If the principal loses permission or fails, stop activities it can no longer lawfully provide and preserve records and customer claims. A replacement needs appropriate permissions, lawful onboarding and a valid transfer route. Ordinary migration requires the necessary customer agreement; a qualifying UK special-administration transfer can follow different statutory rules. Moving a ledger alone supplies neither route. The exit plan must address redemption, pending payments, complaints and continuing access through the provider or administrator. The partner-exit and customer-funds analysis examines those arrangements in detail. (SI 2011/99, regs. 39–40; S.I. No. 183/2011, regs. 52–55; Payment and Electronic Money Institution Insolvency Regulations 2021, SI 2021/716, regs. 24–29.)
Request a partner-model review
Send the target markets, entity chart, product screens, funds-flow description and proposed principal’s details. Include available programme terms, customer contracts and any planned overseas support or subcontracting.
The review can define the permitted model, identify the documents and product changes required, and assign the steps that must precede launch. Bank-account procurement, provider acceptance and an institution’s own authorisation application require separately agreed scope.