The National Bank of Serbia is preparing amendments to the Law on Payment Services that promise to revolutionize the financial landscape. These changes, currently under public discussion until June 27, introduce the concept of open banking to Serbia. This initiative aims to enhance competition among financial service providers and expand service offerings for both consumers and businesses.
Since 2014, Serbia has progressively modernized its payment system with the adoption of the Law on Payment Services, aligning with EU standards and global best practices. This included opening the market to non-bank payment providers, which bolstered the availability of digital payment services and improved user protection mechanisms.
Central to these developments is Serbia’s introduction of instant payment systems, which allow for money transfers within seconds, available 24/7 throughout the year. This infrastructure has enabled innovative services such as instant online payments, bill settlements via QR codes, and mobile-based transactions—advancements that surpass those currently available in many EU countries.
The proposed amendments now introduce open banking, a system already established in some EU nations like Germany, the Netherlands and Sweden. Open banking enables two primary services: payment initiation from accounts held at other banks and consolidated account information access across multiple providers. These services will be offered by new non-bank entities and potentially by existing providers willing to expand their service portfolios.
Payment initiation via open banking streamlines online purchases by allowing users to initiate payments directly from their bank accounts, bypassing traditional card-based methods. This approach enhances transaction security and reduces costs for merchants, offering a more seamless payment experience.
Additionally, account information services under open banking consolidate financial data from various accounts into a single platform. This empowers users to manage finances more effectively by tracking transactions and balances across different banks, facilitating better financial planning and budget management.
Importantly, all data access under open banking requires explicit user consent, which can be revoked at any time. Stringent security protocols will govern data exchange to safeguard user privacy and financial information.
The National Bank of Serbia, traditionally not a catalyst for financial innovation, has spearheaded these reforms to stimulate market competition and foster technological advancements in the financial sector. By setting the groundwork and infrastructure, the bank aims to propel Serbia towards becoming a regional leader in modern payment solutions.
In conclusion, the amendments to the Law on Payment Services signify a significant leap forward for Serbia’s financial sector, promising enhanced consumer choice, improved service efficiency, and strengthened market competitiveness in the digital era.
