**By JEREMY SMITH**
_Vilnius / London – 2025_
When Britain left the European Union in 2020, it created a silent earthquake in the European fintech sector. Passporting rights evaporated. London’s dominance, once unshakable, began to blur. Amid the regulatory recalibration, one small Baltic country quietly emerged as the unlikely safe harbour for displaced financial innovators: **Lithuania**.
A Fintech Hub by Design
Few outside of regulatory circles had paid much attention to Lithuania’s financial infrastructure. Yet by the time Brexit was complete, Lithuania had already positioned itself to become a magnet for financial technology firms seeking a stable, EU-based jurisdiction.
> “It didn’t happen by accident,” says **Edgars Lasmanis**, founder of Walletto, a Lithuanian-based electronic money institution that operates across the European Economic Area (EEA). “The government, the Bank of Lithuania, and the private sector worked together to create an ecosystem — fast, digital, and friendly to innovation. We got our license, plugged into Visa and Mastercard, and were operational before many of our competitors even figured out where to go.”
Walletto is also a proud member of **FinTech Hub LT**, an industry association that represents the interests of fintech companies in Lithuania. This membership provides a direct channel for engagement with the government and regulators, as the Hub actively collaborates with the Bank of Lithuania to shape policy and drive innovation in the financial sector.
Today, Lithuania is second only to the UK in the number of licensed electronic money institutions (EMIs) in Europe, hosting more than 80 EMIs and dozens of payment and card-issuing companies, including **Vinted, Paysera, and Contis**. At the centre of it all is the **Bank of Lithuania**, which took the bold step of opening direct communication channels with fintech founders and offering a regulatory sandbox long before the concept became trendy.
> “Our goal was to operate like a startup government for fintech,” says **Marius Jurgilas**, former board member of the Bank of Lithuania. “We never shouted about it. We just did it.”
The country’s deliberate strategy was to make Lithuania not just another European financial centre, but a uniquely agile one. Licensing takes **3 months**. Communication is direct. Technical support is real-time. For fintech companies battered by bureaucratic slowness in bigger markets, this is oxygen.
> “Lithuania offered us not just a license but a real partnership,” says Lasmanis. “You can call someone at the central bank and actually get answers.”
Walletto and the Quiet Revolution
As a full member of both the **Visa and Mastercard** networks, the company issues and acquires cards, processes cross-border payments, and delivers mass payout services to merchants across the EEA. Unlike many startups in the space, Walletto operates on its own infrastructure — giving it greater control, reliability, and scalability.
> “We built our own payment gateway, rather than white-labelling someone else’s,” says Lasmanis. “That allows us to move faster, integrate better, and reduce dependency. It’s one of the reasons we’re still standing while others have pivoted or collapsed.”
Owning the stack has also allowed Walletto to implement advanced features — from real-time merchant dashboards to flexible API access for fintech partners, as well as dynamic card issuing across both consumer and corporate lines.
Walletto offers services such as **BIN sponsorship, mass payment infrastructure, and support for Visa OCT and Mastercard MoneySend payouts** — features typically only available through much larger institutions. Walletto’s ability to serve merchants across Europe is not an accident of geography. It is a reflection of a financial system built for modern needs.
> “We’ve helped clients move from concept to card issuance in weeks, not months,” Lasmanis says. “That’s only possible in an environment like Lithuania.”
Regulatory Confidence in a Risk-Averse World
At the heart of Lithuania’s appeal is a pragmatic regulatory environment. The **Bank of Lithuania** promises to review EMI applications within three months, provides clear licensing pathways, and supports both traditional and crypto-adjacent financial services. It even allows direct access to **SEPA** — the eurozone’s payments backbone — through its **CENTROlink** system.
> “In the post-Brexit shuffle, Lithuania did what big economies couldn’t: provide certainty,” says **Michael Barr**, Vice Chair for Supervision at the U.S. Federal Reserve. “In times of market disruption, clarity and access win over heritage.”
Lithuania’s fintech licensees are also granted access to the European market without the bureaucratic and political complications found elsewhere.
> “We’ve had open dialogues with the regulator about product design, risk frameworks, and transaction security,” Lasmanis says. “That kind of responsiveness is rare. It gives you confidence to innovate.”
International Parallels: Learning from Global Fintech Leaders
The United States: Innovation Through Scale and Regulatory Complexity
The US fintech ecosystem is by far the largest and most diverse globally, with hubs in **Silicon Valley, New York, Miami, and Austin**. Companies like **Stripe, Square (now Block), and PayPal** have revolutionised payments and digital banking services on a massive scale.
Yet the US faces challenges different from Lithuania’s.
> “The US regulatory landscape is complex and fragmented, with different rules at federal and state levels,” explains **Lisa Thompson**, fintech analyst at CB Insights. “Companies often spend years navigating the patchwork of licenses and compliance regimes before scaling nationally.”
**Stripe’s journey** highlights this challenge vividly. Founded in 2010 in San Francisco, Stripe offers a global payments platform, but securing operational licenses across the US was a multi-year effort. To legally offer money transmission services, Stripe had to acquire licenses in all 50 states plus Washington D.C. — each with its own nuances, fees, and compliance requirements.
It wasn’t until 2017 — **five years later** — that Stripe had full coverage. For startups, this is a major hurdle.
In contrast, Lithuania offers a single, streamlined licensing process that takes **3 months** and grants **passporting rights across all EU states**. For fintech firms, this provides immediate pan-European market access.
Yet the US benefits from deep capital markets, entrepreneurial culture, and cutting-edge innovation in **AI, blockchain, and DeFi**. The regulatory framework, while complex, is gradually evolving with initiatives such as the OCC’s special fintech charter.
> “In the US, the pace of innovation is rapid, but the regulatory costs and risks are high,” says Michael Barr. “Lithuania’s model offers an attractive alternative — a smaller but highly accessible and cooperative jurisdiction.”
Singapore: Smart Regulation and Regional Gateway
On the other side of the world, **Singapore** is famous for its forward-looking sandboxes and proactive engagement with startups. Its fintech ecosystem thrives by positioning itself as a **gateway to Southeast Asia’s rapidly growing markets**, projected to reach $240 billion in digital payments by 2027.
Singapore combines **robust regulation, government funding, talent development, and IP protections**. As of 2024, over **400 fintech firms** are licensed or registered, including **120+ payment service providers**.
Licensing can be obtained in as little as **2 months** through its tiered system. Like Lithuania, Singapore’s regulators offer clear guidance and fast approvals, but Singapore leverages its geopolitical role to tie fintech into broader ambitions like **digital banking, wealth tech, and sustainable finance**.
> “Singapore and Lithuania share a similar philosophy: act as facilitators, not gatekeepers,” notes Siti Mariam, fintech consultant. “Both create environments where innovation is encouraged but risks are carefully managed.”
The UK: The Rise, The Fall, and The Recalibration
Before Brexit, **London** was the undisputed European fintech capital, home to **Revolut, TransferWise (now Wise), and Monzo**. The UK pioneered **open banking** and fostered a mature fintech ecosystem.
But Brexit fractured seamless EU access, forcing many fintechs to establish subsidiaries elsewhere — with Lithuania a prime beneficiary.
The UK fintech sector still grew by 13% in 2023, reaching £19.9B in gross value added. Yet 30% of firms established EU bases**, citing regulatory uncertainty.
“London’s fintech story is one of ambition and boldness,” says author Chris Skinner. “But Lithuania’s story is about precision and partnership. One shouted, the other built quietly.”
The UK is now recalibrating with updated sandboxes and innovation hubs, but Lithuania remains essential for EU access.
A Model for Modern Finance
Lithuania’s fintech story is more than post-Brexit opportunism. It’s a case study in how small states can lead in innovation by building **efficient systems** instead of chasing headlines.
> “Lithuania has quietly become a fintech superpower by building efficient systems and removing bureaucracy. That’s real innovation,” says **Nouriel Roubini**, professor at NYU.
The **European Banking Authority (2024)** praised Lithuania’s licensing regime and supervisory record. The **New York Fed** has even pointed to Lithuania as a potential model for a digital dollar.
> “Lithuania is an emerging model for scaling secure, digital-first infrastructure,” said **Christine Lagarde**, President of the ECB, in 2023.
Talent, Technology, and Trust
Lithuania’s edge lies in **trust, technical depth, and talent**.
“Talent here is exceptional,” says Lasmanis. “We’re not outsourcing. Our developers, compliance officers, and ops teams are here in Vilnius — building systems rivaling Frankfurt or Dublin.”
Lithuanian companies are developing **fraud-detection AI, onboarding tools, and digital ID authentication** now used across Europe.
“While London still talks about fintech dominance, Lithuania built a real-time highway and let the traffic in,” says Chris Skinner.
Startups benefit from **universities, grants, venture funds, and accelerators**.
Expanding Horizons: Lithuania’s Global Ambitions
Walletto is now looking **westward**.
“The next step is global expansion — into the US and beyond,” says Lasmanis. “But we’ll always be proud of where we started.”
This ambition is echoed across Lithuanian fintechs targeting North America, Asia, and the Middle East.
Lithuania’s model shows that **innovation thrives where systems prioritise people and process**.
The Fintech World Beyond Unicorns and Hype
The fintech world tends to focus on unicorn valuations and billion-dollar rounds. Lithuania offers a different model: getting the plumbing right.
In a noisy world, Lithuania’s **quiet competence** stands out. It didn’t grab headlines — it just became indispensable.
Sometimes, the best revolutions come not with fireworks, but with clean code, fast licenses, and a regulator who picks up the phone.
