Digital Payments & Fintech · Andorra
Fintech & digital payments rules in Andorra (2026)
Andorra shaded by its digital payments & fintech status
Andorra has an in-force, dedicated licensing regime for digital payments and e-money. Law 8/2018 — modelled on the EU's PSD2 and E-Money Directive — requires payment institutions and electronic money institutions to be authorised by the AFA, and implementing regulations on the legal regime for these entities have been adopted by the Government. Andorra is a participant in the Single Euro Payments Area (SEPA), and open-banking/strong-customer-authentication obligations apply, though the fintech market remains small.
Key points
Law 8/2018 of 17 May on payment services and electronic money is the primary framework; it transposes PSD2-derived rules required under the EU–Andorra Monetary Agreement and is the legal basis for licensing payment and e-money activity.
Only entities authorised by the AFA may provide payment/e-money services professionally; the permitted categories are Andorran banks, payment institutions, electronic money institutions and AFA-authorised third parties. The AFA also grants and renews licences.
The Government approved two regulations on the legal regime for payment and electronic money services (and for payment/e-money entities), completing the rulebook below the statute and incorporating European regulatory elements into Andorran law.
Andorra is part of the SEPA geographical scope (joined 2019, operational from 1 January 2020) as one of the non-EEA countries with an EU monetary agreement, enabling euro credit transfers and direct debits across the area.
As the PSD2 equivalent, Law 8/2018 provides for third-party access to payment accounts (account information and payment initiation services) with explicit customer consent, and mandates strong customer authentication for electronic payments — all supervised by the AFA.
Law 24/2021 of 14 October caps interchange fees applied to card payment transactions, mirroring the EU Interchange Fee Regulation and complementing the core payments framework.
Timeline - major decisions & events
The General Council enacted Law 7/2024 on the organisation and operation of financial system entities, introducing MiFID II-aligned requirements for advisory services, suitability assessments, product governance, conflict-of-interest management and internal controls. It directly affects payment and e-money institutions licensed under Law 8/2018.
Chambers and Partners – Banking Regulation 2026: Andorra ↗From 20 January 2023 the AFA accepted the first authorisation applications from entities wishing to operate in digital assets, requiring each applicant to be channelled through a licensed digital overseer — the operational launch of the Law 24/2022 framework.
AFA – Andorran Financial Authority ↗Andorra's first legislative framework for crowdfunding (participatory financing) platforms, also establishing startup, stock-option and digital-nomad regimes. It expands the regulated fintech perimeter under AFA oversight and was published in the Official Gazette on 22 December 2022.
AFA – Innovation & FinTech ↗Amendment to the base AML/CFT law (Law 14/2017) expressly added VASPs — crypto exchanges, custodians, transfer services and token issuers — as obliged entities under UIFAND supervision, aligning Andorra with FATF Recommendation 15 ahead of the full digital asset licensing law the following year.
FATF – Follow-up Report: Andorra 2021 ↗The Government approved an updated implementing regulation under Law 8/2018, repealing the prior regulation and aligning with EU Directive 2015/2366 (PSD2): introducing strong customer authentication, open-banking access rules and enhanced anti-fraud protections for internet and mobile payments within the SEPA framework.
AFA – Andorran Financial Authority ↗As of 1 March 2019 Andorra became the 36th member of the Single Euro Payments Area; all five Andorran banks (Andbank, MoraBanc, Crèdit Andorrà, BancSabadell d'Andorra and Vall Banc) formally adhered on 5 March, enabling standardised cross-border euro credit transfers and direct debits with EU/EEA countries.
AFA – Andorran Financial Authority ↗The principal statute licensing payment institutions and electronic money institutions in Andorra, transposing EU Directive 2007/64/EC (PSD1) and Directive 2009/110/EC; it established AFA as the sole licensing authority and defined the full range of regulated payment services including credit transfers, direct debits, card payments and digital wallets.
AFA – Andorran Financial Authority ↗Twin foundational statutes: Law 7/2013 governs the operating regime of financial entities (including payment entities as a licensed category for the first time) and Law 8/2013 sets organisational requirements, investor protection, market-abuse rules and financial instruments agreements — the bedrock on which all subsequent payment and fintech regulation was built.
ABA – Andorran Banking Association ↗Andorra - other topics
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