In the UK, payment institutions (PI) and electronic money institutions (EMI) both work with electronic currency. The monetary value that is stored in virtual assets is referred to as e-money. The Electronic Money Institution (EMI) distributes electronic currency based on the funds deposited by customers in amounts that are proportional to the value of the currency. Many organizations accept and consider this method of payment to be acceptable. The EMI and PIs are entities that blur the lines between national boundaries by making it possible for services involving funds to be carried out in any country in the world.Although both EMIs and PIs are considered to be non-banking companies, there are distinct differences between the two in terms of the structures that they take, the operations that they do, and the rules that are imposed upon them. In this context, FCA licensing refers to legal entities that execute their business activities on the basis of an authorisation that enables them to deal with electronic forms of money.Those who possess the license are permitted to issue electronic funds as well as supply services for conducting payments and other choices, some of which include IBAN accounts. In addition to providing access to SEPA, the license enables clients to receive payments in euros at lower prices and under the same terms and conditions regardless of the specific type of FCA license they have.As a result of the introduction of new 3D Secure 2 compliance rules and the increasing costs generated by gateways like MasterCard and VISA, many enterprises are searching for alternate options to their payment solutions in unconventional banks. In addition to their other services, a BaaS that has been granted approval by an EMI or PI license would enable customers to accept fast and secure money transfers.The peer-to-peer (P2P) structure for lending that is implemented by many BaaS solutions also encourages the use of virtual currencies as a form of deposit and loan, which results in the delivery of financial leverage and collateral for payment operations.