Latvian Non-Bank Payment Providers to Connect With EKS
Do you know that until October 2024 the Electronic Clearing System of Latvia, EKS was available only to credit institutions and the Treasury? Latvijas Banka has announced a landmark decision that non-bank payment service providers can now become a part of this critical financial infrastructure changing the face of payment services in the country. This is one of the most dramatic changes in the financial sector of Latvia that promises to revolutionize how payments are processed and managed across the nation. Considering this, here we are clearing all your doubts about it including As the European financial sector is progressing, so does Latvia. Latvia’s electronic clearing system (EKS) is the country’s central payment infrastructure. It handles both SEPA instant and standard payments. The system serves all countries within the European Union and European Economic Area. Therefore, it follows the new European direction that emphasizes having more open financial systems which consist of traditional as well as innovative payment service providers offering financial solutions like Verification of payee (VoP). What is the Latvia EKS System? Latvia’s electronic clearing system is the central payment system for SEPA instant and standard payments in all the European Union and European Economic Area countries. It is an extremely robust infrastructure, so it forms the back of all financial transactions that occur in the country to ensure swift and secure payment processing. The system was closed and access to these basic payment services required that non-bank payment providers go through intermediary banks. This added layer has proven inefficient, costly, and has restricted the development of innovation in the market. Who Can Access the EKS? The system now opens its doors to the following: This will put all the payment service providers on an equal footing, ensuring healthy competition and innovation in the financial sector. Various types of institutions bring different strengths and perspectives into the payment ecosystem, enriching the overall service offering that is available to Latvian businesses and consumers. Benefits for the Financial Ecosystem Efficiency The direct access to EKS brings several advantages: Cost Benefits Businesses and consumers can benefit in the following ways: Innovations Boost The increased diversity in providing payment for special needs purposes will prevail Technical Implementation and Security Connecting to the EKS platform requires meeting strict technical and operational standards to ensure system integrity. These include: Technical Requirements Security Measures Legal Compliance An institution which is involved in the system should adhere to the following: TechnoXander: Your Payment Innovation Partner We help Financial Institutions secure Instant Payments in the New EKS Ecosystem. As non-bank payment providers join EKS and gain access to instant payments, the need for robust fraud prevention becomes critical. TechnoXander’s Verification of Payee (VoP) solution plays a vital role in this new landscape by: This makes our VoP solution particularly valuable for new EKS participants who need to ensure secure and compliant instant payment processing from day one. To learn more about how TechnoXander can help your organisation take advantage of these new opportunities in Latvia’s payment landscape, please email us at info@technoxander.com. Key Takeaways
