TITLE: Lithuanian Bank Revokes AlphaPay Payment Institution Licence Due to Multiple Regulatory Breaches
BODY:
On July 22, 2026, the Lithuanian Bank revoked the payment institution licence of AlphaPay, UAB (formerly NovaPay, UAB) due to multiple serious regulatory violations and its inability to maintain safe, reliable, and stable operations.
The Lithuanian Bank determined that AlphaPay failed to meet licence requirements across several critical areas. The institution's internal control systems and information and communications technology infrastructure were inadequate, and it failed to ensure proper protection of payment service users' funds. Additionally, AlphaPay did not meet own capital requirements and failed to submit audited 2025 annual financial statements, audit opinions, and general shareholders' meeting resolutions on profit or loss distribution within the prescribed timeframes. In April 2026, the Lithuanian Bank suspended AlphaPay's licence and restricted access to accounts holding client funds. The regulator subsequently issued orders requiring the institution to remedy identified breaches of legal requirements and provide accurate data on its activities and financial condition. AlphaPay failed to comply with these directives.
Following assessment of all circumstances, the Lithuanian Bank concluded the institution could not ensure safe, reliable, and stable operations, creating a threat to client interests. The revocation means AlphaPay cannot provide any financial services. According to the Lithuanian Bank, the institution is insolvent, lacking sufficient funds to meet its obligations and holding negative own capital. Consequently, the Lithuanian Bank will petition the court to initiate insolvency proceedings against AlphaPay.
The Lithuanian Bank also approved the reorganisation of insurance company Gjensidige by merger with ERGO Insurance SE, with a six-month transition period for transferring rights and obligations.