Portugal’s PSD2 framework makes open banking in portugal one of the most accessible payment infrastructures in the EU — covering 52 bank APIs and 30 licensed account providers. SMEs, importers, and high-risk merchants that connect now gain a structural cost and compliance advantage over card-dependent competitors. TODA Pay delivers that connection through licensed, PSD2-compliant APIs, without traditional banking intermediaries.
What PSD2 Means for Portuguese Businesses
Portugal transposed the EU’s Second Payment Services Directive into national law via Decree-Law No. 91/2018. Banco de Portugal enforces compliance across all licensed payment service providers operating in the country. The forthcoming PSD3 will expand these protections further, cementing open banking portugal as a long-term regulatory priority.
PSD2 established two categories of licensed third-party providers with distinct functions:
| Provider Type | Core Function | Business Application |
| PISP — Payment Initiation Service Provider | Initiates payments directly from a bank account | Checkout without cards, cross-border transfers |
| AISP — Account Information Service Provider | Aggregates account data across multiple banks | Credit assessment, financial dashboards, KYC |
| CBPII — Card-Based Payment Instrument Issuer | Confirms fund availability in real time | Prepaid card issuance, instant credit decisions |
Each provider category requires separate licensing from a National Competent Authority and adherence to EBA Regulatory Technical Standards. Licensing defines the data accessible, the services deliverable, and the compliance obligations in force.
How Open Banking APIs Connect Portugal’s Market
Portugal’s open banking infrastructure follows the Berlin Group’s NextGenPSD2 standard — ensuring full interoperability with every other EU member state. That standardisation matters: a single compliant API integration grants access to the entire European Economic Area payment network.
Portugal’s current ecosystem includes:
- 52 bank APIs across 30 account providers
- 23 API aggregators operating in the market
- Caixa Geral de Depósitos, Millennium BCP, Novo Banco, and Banco BPI among active open banking participants
- 74 EU-passported TPPs already serving Portuguese customers
The Berlin Group standard eliminates the need for bank-by-bank integrations. Businesses connecting through a licensed aggregator gain immediate access to the full network through one technical implementation.
Why Portugal’s Payment Market Is Changing Now
SIBS — the national payment processor behind Multibanco — held a dominant grip on Portugal’s payments infrastructure for decades. In March 2024, the Portuguese Competition Authority (AdC) fined SIBS for abusing that dominant position. The ruling signals active regulatory intent to open the market to competitive alternatives.
The Banco de Portugal’s National Strategy for Retail Payments, with a 2025 implementation horizon, explicitly prioritises PSD2 adoption and interoperable eID solutions. That strategy accelerates the conditions for open banking in portugal to scale. Key market drivers already in motion include:
- AdC enforcement action against SIBS creating structural space for new entrants
- 74 European TPPs passported to Portugal, demonstrating sustained cross-border commercial interest
- Lisbon’s growing fintech ecosystem attracting payment infrastructure investment
- Banco de Portugal’s national payments strategy mandating digital payment modernisation
Businesses that establish compliant payment infrastructure now — before domestic adoption reaches saturation — gain durable competitive positioning in Portugal’s evolving financial market.
Open Banking Use Cases for High-Risk and SME Merchants
Open banking portugal delivers measurable operational advantages across several business models. Pay-by-bank technology eliminates card network intermediaries entirely, reducing transaction costs and removing chargeback exposure at the source.
The highest-impact use cases for TODA Pay’s target segments include:
- Cross-border payment initiation — importers and exporters settle in euros via SEPA Instant without correspondent bank delays
- High-risk merchant processing — regulated PISP infrastructure replaces card-based processing, removing the primary source of dispute risk
- Account aggregation for credit and KYC — AISP access delivers real-time financial verification, replacing manual document processes
- Embedded payment flows for platforms — marketplaces and SaaS platforms integrate bank-direct checkout without acquiring bank dependencies
Each use case operates under PSD2’s Strong Customer Authentication (SCA) framework, requiring multi-factor verification before any transaction executes. That mandatory security layer reduces fraud exposure for merchants and platforms alike.
Connect to Portugal’s Open Banking Infrastructure Today
Portugal’s regulatory environment is open, the banking API infrastructure is live, and 74 licensed European providers already operate in the market. The technical and legal conditions for compliant payment processing exist now. TODA Pay holds the licensing and API connectivity to activate that infrastructure for SMEs, enterprise clients, and high-risk merchants seeking an alternative to traditional acquiring.
TODA Pay delivers direct bank payment access across Portugal’s 52 bank APIs — with no card network dependency, no chargeback risk, and full PSD2 compliance built in. Connect your business to Portugal’s open banking network and start processing bank-direct payments through TODA Pay today.
Frequently Asked Questions
Does Portugal have open banking?
Portugal operates under the EU’s PSD2 framework, transposed into national law via Decree-Law No. 91/2018 and enforced by Banco de Portugal. Licensed third-party providers access customer account data and initiate payments with explicit, revocable user consent.
Which banks support open banking APIs in Portugal?
Caixa Geral de Depósitos, Millennium BCP, Novo Banco, and Banco BPI maintain active open banking APIs. Portugal’s ecosystem currently spans 52 bank APIs across 30 account providers and 23 aggregators.
Is open banking in Portugal legal and regulated?
Open banking in Portugal is fully legal and governed by PSD2 under direct Banco de Portugal oversight. The Berlin Group’s NextGenPSD2 standard ensures compliant, interoperable API connectivity across all EU member states.
How does PSD2 affect high-risk merchants in Portugal?
PSD2 grants licensed PISPs the right to initiate payments directly from customer bank accounts, bypassing card networks entirely. High-risk merchants gain access to lower transaction costs and structurally eliminate chargeback exposure.
What is the difference between AISP and PISP in Portugal?
An AISP aggregates and reads account data from one or more banks with user permission, enabling financial dashboards and real-time credit assessments. A PISP initiates payment transactions directly from a bank account, removing the card network from the payment flow.
