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New Payment Services Legislation in Bulgaria - New Opportunities and Challenges

Effective this month, the new Payment Services and Payment Systems Act, establishes newfangled regulation rules. The entirely new legal act is in accordance with Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market (PSD2), which envisages new opportunities and challenges on the payment products horizon.
The purpose of the legal act is to fill in the regulatory “gap” in line with the dynamic development of the payment products market.
The changes concern the implementation of new types of payment services and payment service providers and the respective mechanisms for providing this kind of services.
Moreover, obtaining a license for payment institution from the Bulgarian National Bank will be faced with newly-added requirements. The newly adopted act also establishes a new mechanism for management of operational risks and refines the regulatory framework referring to administrative sanctions.