TODA Pay connects businesses to Cyprus’s PSD2-regulated Open Banking infrastructure — giving merchants, platforms, and high-risk operators direct access to account-to-account payments, real-time financial data, and EU-passported settlement without the delays of traditional banking.
What Open Banking in Cyprus Actually Delivers
Open Banking Cyprus operates under a clear regulatory mandate. The Payment Services Law L.31(I)/2018 transposed PSD2 into Cypriot national law, placing the Central Bank of Cyprus (CBC) as the primary supervisory authority over all licensed payment institutions and electronic money institutions (EMIs). Every data-sharing transaction requires explicit user consent, and every provider must meet Regulatory Technical Standards (RTS) for security.
Businesses connecting to Open Banking in Cyprus gain four core capabilities:
- Account-to-account payments (A2A): Funds move directly between bank accounts, bypassing card networks and their associated interchange fees.
- Payment initiation (PISP): Licensed providers initiate payments from a payer’s account on behalf of the merchant, with real-time confirmation.
- Account information aggregation (AISP): Businesses access consolidated transaction data across multiple accounts through a single API call.
- Funds confirmation: Real-time verification of available balance before transaction initiation eliminates settlement risk.
These capabilities replace multiple legacy integrations with a single, standardised connection to the Cypriot banking ecosystem.
How PSD2 Shapes Cyprus Payment Infrastructure
The PSD2 framework introduced two distinct provider categories that form the backbone of Open Banking Cyprus infrastructure. Understanding the difference determines which licence type fits a given business model and shapes the commercial relationship with acquiring banks and end customers.
| Provider Type | Core Function | Primary Use Case |
| AISP (Account Information Service Provider) | Aggregates account data with user consent | Cash flow analysis, credit scoring, financial dashboards |
| PISP (Payment Initiation Service Provider) | Initiates payments directly from payer accounts | Checkout payments, recurring billing, bulk payouts |
| EMI (Electronic Money Institution) | Issues e-money, holds client funds, combines AISP + PISP | Full-service fintech platforms, multi-currency wallets |
Cyprus-licensed EMIs carry EU passporting rights, enabling operations across all 30 EEA member states under a single authorisation from the CBC. This jurisdictional advantage makes Cyprus a strategic entry point for businesses targeting the European market.
Open Banking Cyprus Solutions for High-Risk Business
Traditional banking routes consistently decline or restrict high-risk operators — iGaming companies, Forex and CFD brokers, crypto asset service providers, and nutraceutical merchants face account terminations, elevated rolling reserves, and opaque chargeback policies. Open Banking Cyprus resolves these friction points by routing payments outside the card-scheme infrastructure entirely.
Account-to-Account Payments Cut Processing Costs
A2A payment initiation removes card networks from the transaction chain. Without card-scheme fees and without card-present chargeback mechanics, high-risk merchants retain a larger share of each transaction while reducing exposure to fraudulent chargeback claims.
Businesses operating in regulated high-risk verticals use Open Banking payment initiation for:
- iGaming and online gambling: Instant deposit confirmation and withdrawal initiation without card-network restrictions.
- Forex and CFD platforms: Real-time fund transfers between client accounts and trading accounts, with funds confirmation before position opening.
- Crypto and CASP operations: Compliant fiat on-ramp and off-ramp flows through CBC-regulated channels, aligned with MiCA requirements.
- Import and export businesses: Multi-currency bulk payment initiation across SEPA and SWIFT rails from a single API connection.
Cyprus’s regulatory environment — shaped by the CBC Innovation Hub and CySEC’s Regulatory Sandbox — actively supports these verticals, providing a structured path to compliance rather than blanket exclusion.
Cyprus Open Banking API: Integration and Security Standards
Open Banking API infrastructure in Cyprus adheres to the RTS on Strong Customer Authentication (SCA), PCI DSS Level 1 data security standards, and eIDAS certificate requirements for third-party provider identification. These standards do not create integration barriers — they define the security baseline that enterprise and platform clients require before connecting any payment infrastructure.
Connecting to Open Banking Cyprus payment services follows four sequential stages:
- Provider authorisation: Confirm the payment provider holds a CBC-issued EMI or PI licence, or operates under a valid EU passport — this single check validates regulatory standing across 30 markets.
- API sandbox access: Test payment initiation, account information retrieval, and funds confirmation flows against a replicated live environment before production deployment.
- SCA and OAuth 2.0 configuration: Implement Strong Customer Authentication using the provider’s Mobile SCA or OTP infrastructure, with OAuth 2.0 handling consent and access token management.
- Production go-live and monitoring: Activate real-time transaction monitoring, webhook-based notifications, and AML transaction screening to meet ongoing CBC compliance obligations.
Integration timelines depend on technical stack, but businesses with existing REST API capabilities typically reach production within days rather than months.
Access Open Banking Payment Services in Cyprus
TODA Pay provides businesses with direct access to Cyprus’s PSD2-regulated Open Banking infrastructure — combining payment initiation, account information services, and multi-currency settlement under a single, CBC-compliant connection. High-risk merchants, SMEs, and enterprise platforms connect to EU-passported payment rails without navigating individual bank relationships or building proprietary API integrations.
Key advantages of connecting through a regulated Open Banking Cyprus provider include:
- EU passporting coverage: A single Cyprus-based EMI connection covers payment acceptance and initiation across all 30 EEA member states.
- Chargeback elimination: A2A payment initiation removes card-scheme chargeback mechanics, protecting settlement balances for high-risk operators.
- Real-time data access: Account information services deliver live transaction data and cash flow analytics without manual reconciliation.
- AML/KYC compliance infrastructure: Built-in transaction monitoring and KYB onboarding meet CBC and FATF standards out of the box.
Connect your business to regulated Open Banking infrastructure in Cyprus — contact TODA Pay today.
Frequently Asked Questions
What is Open Banking in Cyprus?
Open Banking in Cyprus is a regulated system that lets licensed third-party providers access bank account data and initiate payments via secure APIs. The Central Bank of Cyprus enforces PSD2 compliance, ensuring every data-sharing transaction requires explicit user consent.
Is Open Banking regulated in Cyprus under PSD2?
Yes — Cyprus transposed PSD2 into national law through Payment Services Law L.31(I)/2018, placing the Central Bank of Cyprus as the primary supervisory authority. All licensed payment institutions and EMIs operating in Cyprus must meet RTS security standards and SCA requirements.
Which businesses benefit most from Open Banking in Cyprus?
High-risk merchants, Forex brokers, iGaming operators, and import/export businesses gain the most from Open Banking Cyprus infrastructure. These sectors access real-time account data, lower processing costs, and direct payment initiation without dependence on traditional card networks.
How does Open Banking differ from traditional payment gateways?
Traditional gateways route transactions through card networks, adding interchange fees and chargeback exposure at each step. Open Banking initiates payments directly from the payer’s bank account, eliminating card-scheme costs and reducing fraud risk at the transaction level.
Can high-risk merchants access Open Banking services in Cyprus?
Cyprus actively supports high-risk industries through its licensed EMI and Payment Institution framework, regulated by the CBC. Open Banking payment initiation gives high-risk merchants account-to-account settlement, chargeback protection, and EU passporting rights across all 30 EEA member states.
