Latvia’s open banking infrastructure operates under EU law, connects 11 banks through 26 active APIs, and processes euro payments in under 10 seconds via SEPA Instant. For businesses seeking a regulated, low-cost alternative to card networks in a digitised EU market, TODA Pay provides direct access to this infrastructure — without the burden of acquiring your own licence.
How PSD2 Shapes Open Banking Rules in Latvia
The Payment Services Directive 2 (PSD2), enforced across the EU in 2018, forms the legal backbone of open banking in Latvia. Under PSD2, banks must expose their payment account data to licensed Third-Party Providers (TPPs) through standardised APIs — with explicit customer consent. Latvia’s Financial and Capital Market Commission (FCMC) serves as the national supervisory authority, enforcing compliance and maintaining the registry of authorised providers.
Latvian banks and TPPs align with the NextGenPSD2 framework developed by the Berlin Group, ensuring cross-border API interoperability. The European Commission’s draft PSD3 legislation will strengthen these standards further — equipping regulators with sharper tools to enforce API quality and expanding business protections across the EEA.
Four regulatory pillars define how open banking Latvia operates today:
- PSD2 / PSD3 — EU directives mandating API access and setting consumer protection standards
- FCMC authorisation — national licence requirement for all TPPs operating in Latvia
- eIDAS Certificate (QTSP-issued) — cryptographic credential required for secure API access
- NextGenPSD2 / Berlin Group standard — technical framework governing API structure and interoperability
Compliance with this framework is not optional — it is the baseline for any provider operating in the Latvian market, and it is what makes open banking payments in Latvia a trusted, auditable infrastructure for business transactions.
Latvia’s Open Banking Ecosystem: Banks and APIs
Latvia’s open banking market includes 11 banks and account providers supported by 26 bank APIs — a mature technical layer ready for business integration. The dominant participants are Nordic banking groups with established developer portals and sandbox environments, alongside leading digital banks.
| Bank / Provider | Active Bank APIs | Developer Portal |
| Swedbank Latvia | Yes | Active |
| SEB Latvia | Yes | Active |
| Luminor | Yes | Active |
| Citadele Bank | Yes | Active |
| Revolut | Yes | Active |
Access to these APIs does not require a direct integration with each bank. A licensed open banking API aggregator consolidates connectivity into a single endpoint — reducing technical overhead and accelerating time to market for merchants and platforms.
Digital payment adoption in Latvia supports this infrastructure from the demand side. Around 20% of Latvians use mobile payments as their primary transaction method, and 66% of the population used online banking as early as 2018. The market is primed for account-to-account payment products.
What Open Banking Payments Deliver for Business in Latvia
Open banking payments — also called Pay by Bank or A2A payments — transfer funds directly between bank accounts, bypassing card networks entirely. For businesses operating in Latvia or processing euro payments into Latvian accounts, this model delivers measurable financial and operational advantages.
Four outcomes matter most to SMEs, high-risk merchants, and cross-border platforms:
- Lower transaction costs — no interchange fees, no card scheme markup; direct bank transfer economics apply
- Real-time settlement via SEPA Instant — funds reach the merchant account in under 10 seconds, 24/7/365
- Stronger fraud protection — Strong Customer Authentication (SCA) and bank-native authorisation replace card data exposure
- Broader payment acceptance — reaches customers who prefer bank transfers over card payments, including B2B buyers and importers
These advantages compound for high-volume businesses. A platform processing 10,000 monthly transactions eliminates card processing costs on every single one while gaining immediate access to settled funds — improving cash flow without factoring or credit facilities.
Licensing and Access: AISP vs PISP Explained
Two licence categories govern how third parties interact with bank accounts under PSD2 Latvia. An Account Information Service Provider (AISP) reads account data — balances, transaction history, identity verification. A Payment Initiation Service Provider (PISP) triggers payments directly from a customer’s bank account. Both require authorisation from the FCMC or a passported EU licence.
Businesses that want to accept open banking payments in Latvia have three access paths:
- Partner with a licensed PISP — the fastest route; the provider’s licence covers the business, no regulatory application required
- Apply for a Payment Institution licence — full regulatory process; appropriate for platforms building embedded finance products at scale
- Use an Electronic Money Institution (EMI) — combines payment initiation with account-holding capabilities under a single EU-regulated entity
For most SMEs and merchants, partnering with an existing licensed provider delivers immediate market access without the 12–18 month licence application timeline.
Start Accepting Open Banking Payments in Latvia
Businesses that process cross-border euro payments, operate in high-risk categories, or want to reduce dependence on card networks find Latvia’s open banking infrastructure directly applicable to their commercial model. TODA Pay operates as a licensed EU payment provider with direct connectivity to Latvian bank APIs, SEPA Instant rails, and the regulatory framework that makes account-to-account payments enforceable and auditable.
No card fees. No intermediary card network. Settlement in seconds, not days.
Connect your business to Latvia’s open banking payment infrastructure through TODA Pay — contact the team today to configure your integration and start processing.
Frequently Asked Questions
What is open banking in Latvia?
Open banking in Latvia operates under the EU’s PSD2 directive, requiring banks to expose account data and payment initiation capabilities via APIs to licensed third-party providers. Businesses access these services through regulated payment providers, enabling direct bank transfers without card networks or traditional banking relationships.
Which banks support open banking APIs in Latvia?
Latvia’s open banking ecosystem includes 11 banks and account providers with 26 active APIs, covering major institutions such as Swedbank, SEB, Luminor, Citadele, and Revolut. Each institution maintains a dedicated developer portal built to the NextGenPSD2 standard, ensuring structured and auditable API access.
Do businesses need a licence to use open banking in Latvia?
Businesses do not need their own AISP or PISP licence to accept open banking payments in Latvia. Partnering with a licensed payment provider grants immediate access to bank APIs under that provider’s FCMC-recognised regulatory authorisation, eliminating the cost and timeline of a direct licence application.
How does SEPA Instant work with open banking payments in Latvia?
SEPA Instant Credit Transfer settles euro payments in under 10 seconds, around the clock, across all participating Latvian banks. Open banking payment initiation triggers this infrastructure directly — delivering real-time funds to the merchant account without batch processing delays or end-of-day cut-offs.
What types of businesses benefit most from open banking in Latvia?
High-risk merchants, e-commerce platforms, importers, and SaaS companies gain the most from open banking in Latvia, as it eliminates card network fees and accelerates settlement cycles. Any business processing recurring B2B or cross-border euro payments benefits from reduced transaction costs and faster access to working capital.
