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Fintech & payments regulation in Latvia (2026)

Fintech and digital payments in Latvia: licensing regime.

Latvia operates a fully established, EU-compliant licensing regime for payment institutions (PIs) and electronic money institutions (EMIs), supervised by Latvijas Banka since its absorption of the FKTK/FCMC on 1 January 2023. The Law on Payment Services and Electronic Money transposes PSD2 and provides a two-tier (licensed and registered) authorisation structure with EU passporting rights. Latvijas Banka is actively issuing licences, eight in 2025 and seven already by May 2026, and is preparing market participants for the forthcoming PSD3/PSR transition.

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Legal framework

Law on Payment Services and Electronic Money (Maksājumu pakalpojumu un elektroniskās naudas likums; likumi.lv id 206634), implementing EU PSD2 Directive 2015/2366/EU; supervised by Latvijas Banka as single competent authority since 1 January 2023 (following FKTK/FCMC merger)

How to get an EMI license in Latvia

To provide electronic-money or payment services in Latvia you need authorisation as an Electronic Money Institution (EMI), supervised by Latvijas Banka, under the EU E-Money Directive (2009/110/EC) and the Second Payment Services Directive (PSD2).

Authority
Latvijas Banka
License required
authorisation as an Electronic Money Institution (EMI)
Framework / law
the EU E-Money Directive (2009/110/EC) and the Second Payment Services Directive (PSD2)
Minimum capital
€350,000 initial capital for a full (Authorised) EMI; a lighter Small EMI regime exists below an average €5m of outstanding e-money
Timeline
roughly 3–12 months; the regulator has up to 3 months to decide once the application is complete
Cost
application and supervisory fees that vary by country (often €5,000–€25,000), plus safeguarding and audit costs
Passporting
Yes: an EMI authorisation passports across the whole EEA (all 27 EU states plus Norway, Iceland and Liechtenstein).

What an EMI license in Latvia covers

  • Issuing electronic money and maintaining payment accounts
  • Executing payment transactions: credit transfers, direct debits and card payments
  • Issuing and/or acquiring payment instruments
  • Money remittance
  • Payment initiation services (PIS)
  • Account information services (AIS)

Step by step: getting an EMI license in Latvia

  1. Incorporate in the member state and establish real local substance (registered office and part of the business conducted there).

  2. Build the application file: programme of operations, three-year business plan, governance, AML/CFT, safeguarding and security policies.

  3. Deposit and evidence the €350,000 initial capital.

  4. Submit the application to the national competent authority.

  5. The authority has three months from a complete application to grant or refuse.

  6. On authorisation you are entered in the national and EBA registers, then passport into other EEA states before serving them.

Documents required in Latvia

  • Programme of operations listing each payment service you will provide
  • Business plan with a three-year budget forecast
  • Evidence of the €350,000 initial capital
  • Governance arrangements and internal-control mechanisms
  • AML/CFT policy and appointment of a compliance officer
  • Safeguarding arrangements for client funds (segregated account or insurance)
  • Security policy, incident management and ICT resilience procedures
  • Fit-and-proper documentation for directors and qualifying shareholders
  • Description of any outsourcing, agents or distributors
  • Professional indemnity insurance where you provide PIS or AIS

Ongoing obligations in Latvia

  • Maintain own funds under the applicable calculation method (A, B or C)
  • Safeguard client funds at all times, segregated or insured
  • Apply strong customer authentication (SCA) under PSD2
  • Run continuous AML/CFT monitoring and reporting
  • Report major operational and security incidents to the regulator
  • Submit annual audited accounts and periodic regulatory reporting

Key points: digital payments & fintech in Latvia

  1. Unified regulator, Latvijas Banka

    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.

    bank.lv eng.lsm.lv

  2. Two-tier PI and EMI licensing

    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.

    bank.lv bank.lv bank.lv bank.lv

  3. PSD2 open-banking implementation

    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.

    likumi.lv openbankingtracker.com enablebanking.com

  4. SEPA Instant Payments, early adopter

    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.

    yapily.com bank.lv

  5. BNPL governed by EU Consumer Credit Directive II

    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.

    oliverwyman.com eur-lex.europa.eu

  6. PSD3/PSR preparation underway

    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.

    bank.lv financialregulations.eu

EMI license in Latvia: FAQ

Do you need a license to run an e-money business in Latvia?

Yes. To provide electronic-money or payment services in Latvia you need authorisation as an Electronic Money Institution (EMI), supervised by Latvijas Banka, under the EU E-Money Directive (2009/110/EC) and the Second Payment Services Directive (PSD2).

Which authority issues EMI licenses in Latvia?

Latvijas Banka.

How much does an EMI license cost in Latvia?

Application and supervisory fees that vary by country (often €5,000–€25,000), plus safeguarding and audit costs.

How long does it take to get an EMI license in Latvia?

Typically roughly 3–12 months; the regulator has up to 3 months to decide once the application is complete.

What documents do you need for an EMI license in Latvia?

The application file centres on programme of operations listing each payment service you will provide; business plan with a three-year budget forecast; evidence of the €350,000 initial capital; governance arrangements and internal-control mechanisms; plus fit-and-proper evidence for directors and qualifying shareholders.

What is the application process for an EMI license in Latvia?

Incorporate in the member state and establish real local substance (registered office and part of the business conducted there). Build the application file: programme of operations, three-year business plan, governance, AML/CFT, safeguarding and security policies. The authority then assesses the file and, once authorised, you can begin operating.

Does an Latvia EMI license work in other EU/EEA countries?

Yes: an EMI authorisation passports across the whole EEA (all 27 EU states plus Norway, Iceland and Liechtenstein).

Sources

  1. likumi.lv/ta/en/en/id/206634
  2. bank.lv/en/about-us/integration-of-latvijas-banka-and-the-fcmc
  3. bank.lv/en/operational-areas/licensing/payment-institution/licensed-payment-i
  4. bank.lv/en/operational-areas/licensing/electronic-money-institutions/licensed
  5. bank.lv/en/operational-areas/licensing/payment-institution/registered-payment
  6. bank.lv/en/operational-areas/licensing/electronic-money-institutions/register
  7. bank.lv/en/news-and-events/news-and-articles/news/17442-latvias-financial-mar
  8. eng.lsm.lv/article/economy/banks/saeima-approves-merger-of-latvian-central-bank-
  9. openbankingtracker.com/country/latvia
  10. enablebanking.com/docs/markets/lv/
  11. yapily.com/blog/open-banking-baltics-instant-payments
  12. oliverwyman.com/our-expertise/insights/2025/feb/impact-of-ccd2-on-buy-now-pay-later-s
  13. eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023PC0367
  14. financialregulations.eu/blog/psd3-psr-eu-payment-services-guide

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026