Q2 2018 overview of payment institution sector

The number of payment institutions operating on the Estonian market as at Q2 2018 was 13, three of which operated on the basis of exceptions.

Key indicators

Q1 2018 Change Q2 2018
Volume of payments 120,4 mln € 167 mln €
Number of payments 0,97 mln 1,1 mln
Profit 0,5 mln € 1,5 mln €
Return on equity (on full-year basis) 11,9% 23,3%
Own funds requirement coverage 854% 1044%


Payments of 167 million euros were made via the payment institutions operating in Estonia in Q2 2018, which is 39% more than in Q1. The increase in the volume of payments was caused by one payment institution. 

1.1 million payments were made in Q2, which is 15% more than in Q1. The average amount of a payment transactions was 152 euros, 21% more than in Q1.

Payment institutions earned a profit of 1.5 million euros in Q2.

The return on equity of the payment institutions sector comprised 23.3% in Q1 and the relevant indicator in Q1 was 11.9%.

The capitalisation of the payment institutions sector is strong and the surplus of own funds exceeds the own funds requirement 10.4 times. The increase in the own funds requirement coverage is a result of the inclusion of the audited profit for 2017 in own funds.

Main developments and risks

  • Payment institutions earn only 19% of the sector’s income from the provision of payment services.
  • The desire to enter the Estonian market of payment institutions or e-money institutions has been great in recent years. Companies established by non-residents in Estonia are also applying for authorisation.