Digital Payments & Fintech - Andorra

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.