What is Passporting?

Got license? Now learn to see if it can be passported? What is passporting and where is it applied?

Transcript

Hello. Have you ever wondered what passporting means in the payments world? My name is Faisal Khan – I’m a banking and a payment consultant and today I’m here to answer that question.

Passporting is a mechanism by which a license which is covered in a specific geographic area is then extended out to other geographic areas. This term was basically born in the EU. So, if you had a license from, let’s say, UK you could go and passport it to other countries like Germany, like Netherlands, like Belgium, and Spain and so forth. And you could pick up customers from those countries without actually being licensed in that country.

A passport, like in the physical sense, allows you to go to other places, to travel to other places. In the payments world, a passport will allow you to pick up transactions from other countries. Very simply put, passporting is a mechanism by which you extend the reach of your license to other countries.

If you have any other questions or comments, feel free to ask in the section below and I’ll be happy to answer it. Till next time, take care.