Fintech & payments regulation in Andorra (2026)

Legal framework

Law 8/2018 of 17 May on payment services and electronic money (the Andorran transposition of EU PSD2 and the E-Money Directive), supervised and licensed by the Andorran Financial Authority (Autoritat Financera Andorrana, AFA), under the EU-Andorra Monetary Agreement.

Key points: digital payments & fintech in Andorra

1. 01Dedicated law in force

   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.

   afa.ad afa.ad

2. 02Regulator and authorisation

   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.

   afa.ad afa.ad

3. 03Implementing regulations adopted

   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.

   afa.ad afa.ad

4. 04SEPA membership

   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.

   europeanpaymentscouncil.eu

5. 05Open banking and SCA

   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.

   afa.ad ecb.europa.eu

6. 06Card interchange fees regulated

   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.

   afa.ad

Timeline of decisions

1. 27 May 2024Law
   Law 7/2024 Aligns Financial Entity Governance with MiFID II

   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

2. 1 Dec 2022Law · official
   Law 42/2022 on Digital Economy, Entrepreneurship and Innovation Enacted

   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

3. 1 Jan 2021Guidance · official
   PSD2-Aligned Payment Services Regulation Approved

   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

4. 1 Mar 2019Decision · official
   Andorra Accedes to SEPA

   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

5. 17 May 2018Law · official
   Law 8/2018 on Payment Services and Electronic Money Enacted

   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

6. 9 May 2013Law
   Laws 7/2013 and 8/2013 Establish Modern Financial System Framework

   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

Sources

1. 1.afa.ad/en/normativa/laws
2. 2.afa.ad/ca/assets/normativa/llei-8-2018-serveis-de-pagament-i-diner-electroni
3. 3.afa.ad/en/press-room/comunicats-de-premsa/the-regulation-of-payment-services
4. 4.afa.ad/en/press-room/comunicats-de-premsa/saproven-dos-reglaments-relatius-a
5. 5.afa.ad/en/entitats-supervisades/entitats-financeres/entitats-de-pagament/act
6. 6.afa.ad/en/coneix-lafa/objectius-i-funcions
7. 7.afa.ad/ca/assets/normativa/llei-24-2021-del-14-d2019octubre-de-les-taxes-din
8. 8.europeanpaymentscouncil.eu/sites/default/files/kb/file/2025-05/EPC409-09%20EPC%20List%20of%20SEP
9. 9.afa.ad/en/consumidors/financial-education/means-of-payment
10. 10.ecb.europa.eu/press/intro/mip-online/2018/html/1803_revisedpsd.en.html