Shopify set up a Luxembourg subsidiary in May to apply for an electronic money institution licence, which would let it issue e-money and offer payment services across the European Economic Area, according to Thierry Labro at Paperjam. Shopify put €350,000 into Shopify Luxembourg Financial Services, exactly the minimum capital an EMI needs, and it’s hiring a head of risk and compliance and an anti-money laundering officer to deal with Luxembourg’s regulator, the CSSF. It isn’t clear whether Shopify has formally applied yet. Shopify Payments still depends on Stripe and PayPal, and Shopify’s annual report warns that a break with either could bring major delays and costs. Shopify said licences would let it keep building on the financial tools it already offers merchants.
