Latvijas Banka has done all the necessary preparatory work and provided non-bank payment service providers with the possibility to join the Electronic Clearing System (EKS) – the payment system created and maintained by Latvijas Banka ensuring the execution of instant payments and other payments made by customers across the SEPA or in the countries of the European Union and the European Economic Area.
Direct participation in the EKS has so far been limited to credit institutions and the Treasury. As of 17 October, licensed payment and electronic money institutions as well as credit unions will also gain direct access to the EKS.
"This is an important step towards facilitating the development of payment services in Latvia, giving equal opportunities to all payment service providers in Latvia, and expanding opportunities for the population and companies to use state-of-the-art and innovative payment services. An innovation-supporting infrastructure forms the basis for the development of state-of-the-art and user-friendly financial services. Allowing non-bank payment service providers access to the EKS is one of Latvijas Banka's initiatives for the development of the fintech area. It aims to create an innovative and internationally competitive financial sector in Latvia, one that makes a significant contribution to economic growth,"
emphasises Mārtiņš Kazāks, Governor of Latvijas Banka.
Payment service providers intending to join the EKS are invited to contact Latvijas Banka. They will be required to conclude an agreement with Latvijas Banka, ensure the technical readiness of their systems, and carry out testing. For detailed information on the process of joining and the preparatory work, see Latvijas Banka's website.
On 14 October, the Council of Latvijas Banka adopted amendments to Latvijas Banka's Regulation "Participation Procedure in Latvijas Banka's Electronic Clearing System", enabling non-bank payment service providers to become participants of the EKS. These amendments will take effect on 17 October alongside amendments to the Law "On Settlement Finality in Payment and Financial Instrument Settlement Systems" and the Law on Payment Services and Electronic Money that provide for the rights of payment and electronic money institutions licensed in Latvia and other European Union Member States to become direct participants of payment systems.
Latvijas Banka has already proactively introduced the required technical changes to the EKS to ensure the direct participation of non-bank payment service providers in the EKS as soon as the amendments to the aforementioned laws, allowing such participation, take effect.