Open Banking Bulgaria: Payments Beyond Traditional Banks

Bulgarian businesses now access a payment infrastructure that bypasses card networks entirely, settles funds directly between bank accounts, and operates under a fully standardised EU regulatory framework. Open Banking Bulgaria represents the most significant structural shift in the country’s payment ecosystem since SEPA adoption — and TODA Pay delivers certified API access to this infrastructure for SMEs, enterprise platforms, and high-risk merchants ready to act before market saturation.

How PSD2 Shaped Bulgaria’s Banking Ecosystem

The regulatory foundation arrived in 2018–2019, when Bulgaria transposed the EU’s Second Payment Services Directive into national law through the Law on Payment Services and Payment Systems. The Bulgarian National Bank issued the first private payment institution licence in September 2019 — marking the operational start of Open Banking as a commercial reality. Banks that initially treated PSD2 as a compliance obligation gradually recognised a more consequential outcome: standardised API infrastructure accessible to any licensed third-party provider.

The regulatory milestones that define the current environment are summarised below.

The table reflects a market entering its commercial maturity phase — precisely the moment when integration decisions carry the most durable competitive advantage.

Bulgaria’s Eurozone Entry Accelerates Open Banking API

Bulgaria’s entry into the Eurozone on 1 January 2026 eliminates the BGN/EUR conversion layer entirely. Businesses connecting to Open Banking API infrastructure now operate within a single-currency SEPA environment, removing settlement complexity and aligning Bulgarian bank APIs with the broader European standard. Cross-border operators — importers, platforms, and marketplaces — gain direct access to the full SEPA payment corridor without currency conversion overhead or dual-currency reconciliation.

Eurozone membership also accelerates API quality improvements across smaller Bulgarian banks, as rising TPP transaction volumes create direct commercial pressure to maintain competitive interface performance.

Account-to-Account Payments Cut Card Fees in Bulgaria

Every card transaction carries an embedded cost: interchange fees, card scheme charges, and processor margins that aggregate to 1.5–3% per transaction for most merchant categories. Payment initiation via Open Banking routes funds directly from the payer’s bank account to the merchant’s account — removing every intermediary in that chain and permanently changing the cost structure for businesses that process payments at volume.

The structural advantages of account-to-account payments over card-based processing are the following:

• Cost reduction: Interchange and scheme fees drop to zero; only API transaction fees apply, typically fixed rather than percentage-based
• Chargeback elimination: Bank-initiated transfers under SCA carry no chargeback mechanism, removing a primary source of revenue leakage for high-volume merchants
• Settlement reliability: SEPA Credit Transfers settle within one business day across all participating Bulgarian banks with structured payment confirmation
• Reconciliation automation: Each payment carries a structured IBAN reference, enabling direct matching against invoices in ERP and accounting systems without manual intervention

This shift represents measurable margin recovery — not incremental optimisation — for any business currently absorbing card network costs.

Open Banking API: Bulgarian Banks and SCA Flows

Bulgarian banks operate redirect-based authorisation flows as the standard Open Banking authentication model. After a payment or account information request initiates, the payer authenticates directly within their bank’s interface — via mobile application, SMS OTP, or push notification — before the transaction completes. Major ASPSPs active in the ecosystem include UniCredit Bulbank, DSK Bank, Postbank, United Bulgarian Bank, Fibank, and the Bulgarian Development Bank.

SEPA Transfers and Open Banking Currency Support

With BGN retired as of January 2026, all payment flows through Bulgarian Open Banking APIs now settle in EUR via SEPA Credit Transfer. The supported payment types across major Bulgarian ASPSPs include the following:

• SEPA Credit Transfer (SCT): Standard EUR transfers settling within one business day, supported by all major Bulgarian banks through their Open Banking interfaces
• Budget payments via SEPA: Introduced post-Eurozone entry, enabling government and public-sector payment initiation through the same API infrastructure
• Bulk payment batches: Multiple payment initiations submitted in a single API call, relevant for payroll, supplier settlement, and platform disbursements
• Account balance and transaction data: Real-time access to account information across multiple banks through a single AISP connection

The full migration to EUR removes currency risk from cross-border payment flows entirely — integration decisions made today remain durable across the Bulgarian market and the wider European SEPA zone.

Business Use Cases for Open Banking in Bulgaria

Open Banking Bulgaria delivers measurable efficiency gains across four distinct business categories: multibanking for finance teams managing accounts across multiple institutions, ERP and accounting automation through direct bank transaction feed connections, payment cost reduction for high-volume merchants, and transaction-based credit assessment for lenders requiring verified financial data without manual document uploads.

The business scenarios generating the strongest results in the Bulgarian market follow a consistent pattern:

1. E-commerce and subscription platforms initiate payments directly from customer bank accounts at checkout, eliminating card processing fees and chargeback exposure on recurring billing cycles
2. Import and trade businesses use SEPA Credit Transfer via Open Banking to settle cross-border supplier invoices within a single API workflow, removing the manual bank portal step from accounts payable
3. Non-bank financial institutions and lenders connect to applicant bank accounts via AISP to retrieve verified transaction history for credit assessment, replacing manual statement uploads with real-time data
4. High-risk merchants operating in categories excluded from standard card acquiring programmes access compliant payment initiation at the account level, where card network risk classifications do not apply

Each scenario removes a specific operational bottleneck. The cumulative effect across a full payment stack is structural cost reduction combined with measurable data quality improvement.

Access Bulgarian Open Banking via Certified API

TODA Pay holds a PISP and AISP licence authorising direct integration with Bulgarian bank APIs under the PSD2 framework. The platform aggregates connections to the country’s major ASPSPs through a single certified API endpoint — removing the need for businesses to manage individual bank integrations, certificate maintenance, or SCA compliance independently.

For high-risk merchants, enterprise platforms, and cross-border operators, the integration delivers the following:

• Single API access to multiple Bulgarian banks, with coverage expanding in line with Eurozone-driven API standardisation across the region
• PISP-licensed payment initiation enabling direct account-to-account payment acceptance without card network dependency or chargeback exposure
• AISP-licensed account aggregation for multibanking dashboards, automated reconciliation, and transaction-based credit assessment workflows
• SEPA Credit Transfer execution in EUR across all connected Bulgarian ASPSPs, with structured payment references for automated matching

Businesses entering the Bulgarian market — or scaling cross-border operations via EU passporting — connect to Open Banking Bulgaria infrastructure without building or maintaining the underlying regulatory and technical layer. Request API access and speak with an integration specialist today.

Frequently Asked Questions About Open Banking in Bulgaria

What is Open Banking in Bulgaria?

Open Banking in Bulgaria operates under the PSD2 framework, transposed into national law through the Law on Payment Services and Payment Systems in 2018–2019. Licensed third-party providers access bank account data and initiate payments through standardised APIs with explicit customer consent authorised via Strong Customer Authentication.

Which Bulgarian Banks Support Open Banking APIs?

Major Bulgarian banks — including UniCredit Bulbank, DSK Bank, Postbank, UBB, and Fibank — maintain PSD2-compliant APIs accessible to licensed TPPs. The list of integrated institutions expands as Eurozone entry drives further API standardisation across the Bulgarian banking sector.

How Do A2A Payments Compare to Card Payments?

Account-to-account payments via Open Banking eliminate interchange fees and card network charges that typically reach 1.5–3% per transaction for merchants. Businesses processing high volumes achieve measurable cost reduction without sacrificing transaction security, regulatory compliance, or settlement reliability.

Is Open Banking in Bulgaria Regulated and Secure?

The Bulgarian National Bank licenses all payment institutions operating as TPPs, and every transaction requires Strong Customer Authentication under EBA technical standards. QWAC certificates authenticate providers within the banking infrastructure, ensuring end-to-end security across every API interaction.

Can High-Risk Businesses Use Open Banking in Bulgaria?

Open Banking operates at the account level rather than through card networks, which removes many restrictions high-risk merchants face with traditional card processors. A licensed PISP facilitates compliant payment initiation for eligible business categories regardless of industry risk classification under card scheme rules.