Fintech & digital payments rules in Latvia (2026)

On 1 January 2023 the Financial and Capital Market Commission (FKTK/FCMC) was fully merged into Latvijas Banka, which now holds sole responsibility for licensing, supervision, and resolution of payment institutions, EMIs, banks, and other financial market participants.

Latvijas Banka issues operating licences to 'licensed' payment institutions (minimum capital €125,000) and 'licensed' EMIs (minimum capital €350,000), plus lighter-touch 'registered' tiers for small-volume operators. Eight PI/EMI licences were granted in 2025 and seven more by May 2026, confirming an active licensing pipeline.

PSD2 was transposed into the Law on Payment Services and Electronic Money; Latvian banks implement open-banking APIs to Berlin Group NextGenPSD2 standards. As of 2024 the Latvian open-banking ecosystem comprises 11 banks and account providers with 26 published APIs, enabling account information and payment initiation services by licensed TPPs.

Latvia joined the SEPA Instant Credit Transfer (SCT Inst) scheme in 2017 and was already substantially compliant ahead of the EU Instant Payments Regulation's October 2025 deadline. Adoption among Latvian PSPs runs at approximately 53%, with most major banks participating and supporting real-time euro settlement.

Latvia has no standalone national BNPL statute; BNPL products fall under the revised EU Consumer Credit Directive (CCD2, Directive 2023/2225/EU), which member states must transpose by November 2025. CCD2 formally brings deferred-payment credit within the licensed consumer-credit framework, requiring creditworthiness checks and standardised disclosures.

Latvijas Banka has identified preparation for PSD3 and the EU Payment Services Regulation (PSR) as an explicit 2026 supervisory priority. The new EU instruments (proposed June 2023, expected to enter force 2026–2027) will replace PSD2; Latvia is in pre-implementation monitoring mode with no national transposition legislation yet tabled.