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Revenues of e-money institutions and payment institutions soared in Q3 2024, with licensing income rising by 22 percent year-on-year to €431.4m and payment transaction volumes up 37 percent to €141bn.
The top ten institutions accounted for more than 70 percent of transaction turnover and 65 percent of licensing revenue, according to the Bank of Lithuania.
By the end of September, 80 e-money institutions and 43 payment institutions were active in the country.
However, the central bank has also said that this period saw market consolidation, with several acquisitions reshaping the sector.
In addition, five licences were revoked, and three new licences were issued.
Large institutions dominate the Lithuanian payments sector, with 91 percent of total market turnover; although small and medium-sized entities make up 45 percent of the sector, they contributed just 9 percent of turnover.
According to the Bank of Lithuania, one institution failed to meet capital requirements during the quarter, and 11 others barely complied.
The regulator also flagged increased liquidity changes, as customer funds held with the central bank dropped 12 percent to €736m, while investments in safe assets surged 1.5 times to €700m.
This may be in part due to safeguarding changes at Eurozone-level, considering the European Central Bank’s view that funds should not be safeguarded with central banks, something that will directly affect the Bank of Lithuania’s CENTROlink.
