The first non-bank payment service provider has joined the Electronic Clearing System (EKS), the payment system created and maintained by Latvijas Banka. SIA xpate, an electronic money institution licensed in Latvia, has successfully started participating in the EKS clearing service. Latvijas Banka is the first central bank in the euro area to ensure direct participation of non-bank payment service providers in a central bank-operated payment system.
Since 17 October 2024, Latvijas Banka has been offering non-bank payment service providers (licensed payment and electronic money institutions) and credit unions the opportunity to become participants in the EKS. This solution was implemented to ensure equal opportunities for all Latvian payment service providers and facilitate the development of payment services in Latvia.
Latvijas Banka's service has sparked interest among non-bank payment service providers, and the first non-bank service provider has already completed all the preparatory work and successfully joined the EKS, initially using the clearing service provided by the EKS.
"Latvijas Banka provides an innovation-supportive infrastructure that allows companies to develop financial services that are modern, convenient, and tailored to the needs of their customers. The opportunity for non-bank payment service providers to become participants in the EKS is one of Latvijas Banka's initiatives to promote the development of the FinTech sector in Latvia. Such an option is currently only available in Latvia," highlights Mārtiņš Kazāks, Governor of Latvijas Banka.
Payment service providers interested in joining the EKS are advised to contact Latvijas Banka and enter into an agreement with it. Moreover, they must ensure the technical readiness of their systems and complete the necessary testing. For detailed information on the process of joining and the preparatory work, see Latvijas Banka's website. Latvijas Banka's experts provide interested companies with promptly accessible and professional advice and support throughout the entire collaboration journey.
The payment system EKS, established and maintained by Latvijas Banka, ensures the execution of customer payments throughout SEPA, which includes the countries of the European Union and the European Economic Area. The EKS system provides two services – a clearing service and an instant payment service. The EKS services are used by credit institutions and the Treasury. Now, for the first time, a non-bank payment service provider has also become a direct participant in the EKS.
The new opportunity has been offered in compliance with the Decision of the European Central Bank regarding access by non-bank payment service providers to payment systems and has been facilitated by the amendments to the laws approved by the Saeima, which were implemented more swiftly than in other countries.