The new Law on Payment Systems and Payment Services, which enters into force on Wednesday (April 20), is to enable liberalisation of financial market allowing entry of new payment service providers, new payment services and reduction of transaction costs. The application of the new payment services regulation will begin from 1 January 2023, reports MIA.
The liberalization of the market enables, in addition to the banks, which so far had a monopoly in providing payment services, other payment institutions to appear on the market i.e. companies that will provide payment services based on a license from the National Bank.
The payment service will allow users to initiate payment transactions online or via mobile apps on their bank account. This service will be especially useful in the field of electronic commerce, i.e. instead of using payment card, it will be possible to pay online using e-banking.
The service for providing information on payment accounts, on the other hand, will enable easier monitoring of the performed transactions and the balance of the accounts. In addition, it will facilitate the application process for the user in order to obtain credit products from banks and other financial institutions.
“It is expected fintech companies to play a significant role in this regard which have the knowledge, experience and technologies for establishing fast, efficient and secure electronic access to service providers, i.e. realization of payment transactions. Entry of new payment service providers, primarily from the fintech sector, will be allowed thereby, thus also providing for encouraging the digital transformation of the existing market participants. Expected boosted competition will contribute to creating broader and higher quality set of payments services for both consumers and companies,” Finance Ministry said in a press release.
The law also stipulates introduction of a payment account with basic features, which can be opened by every citizen. Opening of the account, as well as several basic payment services will be free of charge for the vulnerable categories, thus raising the level of financial inclusion, which we strive for.
Another novelty introduced with the Law is the possibility for domestic individuals and foreign individuals having regulated stay in North Macedonia to open a payment account with basic functions. Through this account, individuals will be able to perform payment transactions for settling their utility bills or transferring funds to another person, without using allowed overruns, reads the press release.
For improvement of transparency of payment services, the National Bank will be obliged to prepare a list of the most representative services of payment service providers, which will be comparatively displayed on its website. A notable novelty introduced with the law is the introduction and regulation of interchange fees in card payments. Additionally, a Unique Register of Accounts will be established within the National Bank of North Macedonia.
