Multi-asset broker Capital.com is recruiting a Chief Executive Officer to head a Cyprus-licensed Electronic Money Institution (EMI) regulated by the Central Bank of Cyprus, signalling a potential expansion into payments and e-money services.
The role, which is based in Cyprus, would require approval from the Central Bank of Cyprus under its "fit and proper" assessment, as is the case with all senior EMI appointments. It is not yet clear whether Capital.com has already secured an EMI licence; the broker had not responded to requests for comment at the time of writing.
CFD brokers move into payments
The interest of CFD brokers in payments and e-money reflects longstanding challenges in their banking relationships, particularly in Cyprus. Banks have often approached CFD brokers with caution, making the opening and maintenance of client-money accounts a complex process, as lenders seek to manage regulatory and reputational risk.
An EMI licence can help brokers address these issues by allowing them to hold balances, process payments, issue cards and offer wallets within their own ecosystem. This enables them to develop services that more closely resemble financial "super apps" combining trading, banking and payments in a single interface.
Licence ownership versus partnerships
There are broadly two routes for brokers seeking to operate in the EMI space. One option is to own the licence outright. In 2020, eToro took this approach by acquiring UK-based Marq Millions and rebranding it as its payments arm, while also obtaining authorisation from the Malta Financial Services Authority to passport services across the European Economic Area. This route is capital intensive: in Cyprus, an EMI licence requires at least €350,000 in initial capital, alongside application and advisory costs.
The wording of Capital.com's job posting indicates that the broker is inclined towards owning an EMI licence rather than relying on a partner. The alternative model is to work through a white-label arrangement. XTB, for example, has introduced an e-wallet and debit card by partnering with DiPocket UAB, which provides the underlying EMI infrastructure.
Towards a financial super app
An EMI licence would enable Capital.com to extend its control over payment flows and client balances, deepening its service offering beyond trading. While the firm has provided limited public detail on its plans, the potential EMI move, combined with its push into the crypto exchange business, points to a trajectory towards becoming a broader financial super app.
