LAW ON PAYMENT SERVICES IMPROVES PAYMENT TRANSACTIONS DOMESTICALLY AND INTERNATIONALLY

BANJA LUKA, MARCH 25 /SRNA/ - The adoption of the Law on Payment Services improves the field of payment transactions both domestically and internationally, in line with strict requirements and high standards of the European Union, primarily the Payment Services Directive /PSD2/, whose principles have been incorporated into the law and adapted to the legal framework and operational conditions of the domestic payment system, the Ministry of Finance of Republika Srpska announced.

The statement recalls that the National Assembly of Republika Srpska adopted yesterday the Draft Law on Payment Services, which represents a reform regulation in the field of payment transactions. The Ministry explains that this law creates the conditions for the gradual introduction of the concept of so-called open banking. "This means that, in addition to banks and the Public Enterprise for Postal Traffic of Republika Srpska, payment services may also be provided by non-bank financial organizations, i.e. payment institutions, which are not allowed to collect deposits but can offer payment services," the Ministry stated. The main objectives of adopting this law include opening the payment services market to new providers, i.e. payment institutions, strengthening competition, which will contribute to more efficient execution of payment transactions, greater availability of payment services, lower transaction costs, and the application of technological innovations in payments, especially in the segment of payment initiation. Other goals include increasing the level of consumer protection through clearly defined rights and obligations of all participants in payment transactions, ensuring secure and transparent operations of payment service providers, and reducing the use of cash in circulation. The importance of the law is also reflected in creating conditions for further development of e-commerce, which is closely linked to modern electronic payment models, whose growth is further encouraged by this law. In addition to new entities that execute payment transactions, the law also introduces so-called third-party services, namely payment initiation services and account information services. The statement adds that these services are provided by specialized entities using modern information technology solutions in the field of financial services. "Additionally, we emphasize that the concept of basic accounts and transparency standards in providing payment services, which have already existed in our regulations and practice for years, have been incorporated into the Law on Payment Services, with further improvements based on analysis of previous implementation and good practices from neighboring countries," the Ministry stated. Furthermore, the adoption of this law has broader significance, as Republika Srpska contributes to fulfilling BiH’s obligations in the process of joining the SEPA payment system, which enables simpler and more cost-effective cross-border payments in euros. "Harmonization with the Payment Services Directive is one of the key prerequisites for joining the SEPA payment system and is carried out in parallel with meeting other standards of this payment system," the Ministry of Finance of Republika Srpska concluded.