Latvia attracts companies interested in entering the European market due to its balanced regulatory environment, favorable geographical location and rather loyal investment requirements. The process of obtaining an authorization document is characterized by reasonable terms of consideration of requests and predictability of regulatory decisions. The Latvian license for a payment institution opens access to the SEPA single space, which is especially important for companies focused on global transactions.
The permit is in demand among fintech startups seeking rapid scale-up, multinational companies operating in the e-commerce sector, and specialized services providing alternative payment methods. To obtain a Latvian payment license means to legally implement financial projects within the framework of strict European standards, reducing operational and legal risks when entering new markets.
Advantages of obtaining a payment license in Latvia
Holding a Latvian payment license allows businesses to operate across all EU member states using the passporting mechanism. This eliminates the need to apply for separate licenses in each country, saving time and reducing administrative expenses. It also opens the door to a larger customer base and increases trust from clients and partners.
Registration of a payment institution license in Latvia - legal framework
The legal regulation of licensing in the sphere of payment services in Latvia is based on the norms harmonized with the EU legislation. The main authorization procedures, stipulations for financial institutions and the touchstone for their activities are set out in the Law on Payment Services and Electronic Money, which entered into force in 2011. This lawful act establishes the record of transactions subject to regulation, the conditions for market access and control measures for compliance with security standards for transaction processing. The papers reflects the rules of the PSD2 Directive, helping Latvia’s financial sector stay in line with EU standards and letting licensed companies offer their services in other EU countries through the passporting system.
The procedure of issuing the authorization document itself is regulated by the Regulation on Licensing, Issuance of Activity Permits and Provision of Information to Payment and Electronic Money Institutions, approved on January 29, 2024. This act defines the dossier required to submit a request for a payment license in Latvia, the procedure for its consideration and the grounds for refusal or revocation of the permit. It sets out stipulations for the applicant's corporate structure, its capital level, measures to prevent financial abuse, as well as criteria for assessing the reputation of the company's administrators. The established norms make it possible to exclude unscrupulous players from the market and create favorable conditions for the work of reliable organizations that comply with the rules of transparent business conduct.
The key role in the regulatory process is played by the Latvian national regulator, which acts as a supervisory structure and monitors observance of established standards of fintech legislation. It is responsible for issuing payment licenses in Latvia, monitoring the activities of relevant institutions, analyzing their financial stability, and reviewing customer protection mechanisms. This body also develops additional legal acts aimed at adapting the national regulation to the changing conditions of the European market. Obtaining a Latvian payment license requires constant interaction with the regulator, including reporting, scheduled inspections and compliance with anti-fraud standards.
Payment licensing in Latvia - list of applicants and requirements
Latvian legislation clearly defines the list of organizations that may carry out payment processing and transfer activities. Regulatory control over this sector is aimed at ensuring market stability, respecting the weal of customers, minimizing threats associated with unscrupulous operations. In order to obtain authorization for payment services in Latvia, an applicant must meet the established criteria, which include requirements for corporate structure, economic resilience and effective training of personnel.
The following categories of institutions are authorized to conduct settlement operations:
- Credit institutions that have the right to attract customer funds, place them in financial instruments and provide settlement services on the basis of Latvian payment license in the jurisdiction and abroad.
- E-coin issuers engaged in the issuance, storage and circulation of digital payment instruments, which makes them an important element of the non-cash settlement infrastructure.
- Payment institutions that provide transaction processing, funds transfer and other non-deposit-taking services.
- State and municipal organizations, if they carry out payment operations within the framework of auxiliary functions and do not perform public administrative duties.
- Financial institutions from other EU countries which already authorized in their jurisdiction and are planning to acquire a Latvian payment license per European regulations.
- Savings and lending associations providing settlement, funds transfer and transaction processing services to their members within the framework of activities agreed with the national regulator.
Each of these categories is required to comply with national legal requirements, including transparency, supervisory obligations and financial stability criteria.
Qualification requirements for obtaining a payment license in Latvia
Companies intending to obtain an operational clearance for payment institutions in Latvia must meet a range of qualification requirements covering several important areas. The firm's management team must demonstrate professional expertise and proven experience in overseeing financial institutions. In addition, any member of senior management or shareholder holding more than 10% of the capital must meet established standards of business integrity and have no record of offenses that could compromise their reliability. These measures are designed to safeguard the payment sector from entities with questionable backgrounds.
A payment license in Latvia opens access to the regulated financial market of the European Union and allows companies to operate legally under EU rules. Meeting all requirements during the application process and after approval helps run smooth operations and reduces the venture of lawful or operational issues.
How to apply for a Latvian payment license: full algorithm
The process of acquiring authorization to operate in the sphere of money transaction services requires compliance with a number of regulatory criteria and passing through several mandatory stages. Companies intending to apply for a Latvian payment license must prepare in advance a full package of papers that meet the requirements of local legislation and EU directives. The regulator assesses not only the financial stability of the claimant, but also the qualifications of its management staff, internal supervision mechanisms, as well as measures aimed at preventing financial threats. Clear adherence to the established algorithm allows minimizing the processing time of a request for a payment license in Latvia and reducing the probability of rejection at the verification stage.
Preparatory stage
The process of procuring authorization to operate in the money movement services sector in Latvia starts with the preparatory stage, where the applicant and the regulator discuss the key parameters of the future project. The licensing authority organizes a meeting with representatives of the company planning to submit a request to preliminarily assess the compliance of the corporate structure with the established criteria. Official registration of a legal entity is not mandatory at this stage, but the claimant must present a clear vision of the structure of the future organization, its sources of funding and the intended scope of activities.
Before starting the payment licensing procedure in Latvia, it is necessary to collect information on the composition of shareholders, corporate governance structure and the candidacies of key officials. The regulator requires proof of financial transparency, so special attention is paid to the origin of capital, sources of investment and methods of fundraising. An important aspect is the detailed elaboration of the corporate configuration, including the mechanism of payment services provision, transaction processing, categories of customers and the list of countries where the future licensee will operate.
As part of this phase, the Bank of Latvia clarifies the regulatory requirements that will apply to the applicant and provides recommendations on mandatory documentation. The initial assessment by the regulator helps to determine whether the concept of the future institution meets the established standards and whether it is advisable to continue the licensing procedure in the field of payment business in Latvia. At this stage, it is possible to adjust the business structure bearing in mind legal and financial aspects, which allows the applicant to remove potential obstacles before submitting a formal request.
The Latvian payment license requires not only compliance with the basic legal criteria, but also a thoughtful approach to establishing a system of internal oversight, threat management and compliance with regulations against illegal financial transactions. The regulator expects the potential licensee to carefully study the current legal framework and, if necessary, to engage legal and financial support specialists. At the same time, the company should independently participate in the development of the corporate configuration to ensure its compliance with regulations.
If a company wants to get a payment license in Latvia, it must provide CVs of all shareholders and key managers, describe how it will transfer money, and explain where its capital comes from and how it is funded. This is done at the first stage. The regulator uses this information to check the company, spot any risks, and decide if the process can move forward. For fintech companies, this first step is very important for getting the license successfully.
Submitting a request to Latvijas Banka
Official application to the regulatory authority is the next step in the process of acquiring authorization to conduct payment activities in Latvia. The application is accompanied by the submission of a dossier needed for a preliminary check, which will determine the applicant's compliance with the established criteria. In order to register the payment license in Latvia without delays, it is necessary to make sure in advance that all submitted information is correct and complies with the legal provisions.
The applicant sends to Latvijas Banka a request for authorization drawn up in line with statutory requirements. It shall be accompanied by mandatory documentation confirming the configuration of the firm, its funding sources, corporate structure and threat management mechanisms. After submission, the regulator starts the review or asks for missing info. In this case, the applicant should promptly provide corrected materials and, if necessary, clarify certain aspects of the request.
At the initial stage of payment licensing in Latvia National Bank conducts a formal verification of the completeness of the submitted data, which takes no more than 15 working days. This process does not affect the substantive appraisal of the applicant's corporate structure or financial solvency, but allows to make sure that the application complies with the established regulations. If the request is recognized as complete, Latvijas Banka notifies the applicant about the beginning of its detailed analysis.
After the application is registered, a dedicated officer from National Bank of Latvia is assigned to oversee the process, coordinate communication with the supplicant, and monitor the progress of the examination. The issuance of a Latvian payment license requires the applicant to meet the established regulatory criteria not only at the time of submission but also throughout the subsequent review, which includes an evaluation of the risk management system, internal controls, and overall compliance with applicable standards.
File attached to the request
Documentary support of the request for authorization in the sphere of payment services in Latvia includes an extensive list of materials that provide a comprehensive check of the claimant by the regulator.
- A detailed outline of who owns the company, including all shareholders.
- Financial documentation confirming the origin of the start-up capital, including reports and sources of funds.
- Business program containing the list of services to be provided under the Latvian payment license and their organizational model.
- Business plan for three years, including financial strategy, equity calculation, cash flow forecast, balance sheet, marketing analysis and stability mechanisms.
- Proof of initial capital contribution, demonstrating that there is sufficient capital to operate effectively.
- A client money protection policy that discloses how assets are safeguarded and how security standards are met.
- An internal supervisory system that regulates risk management, administration and accounting procedures.
- Measures to prevent financial wrongdoing, covering mechanisms to combat illicit enrichment and the proliferation of prohibited transactions.
- Organizational structure containing information on branches, agency agreements, outsourcing contracts and participation in activities related to the registration of payment license in Latvia.
- List of affiliated persons, including information on companies and individuals with whom the institution has business relations.
- Personnel documentation confirming the qualification and business reputation of administrators, specialists responsible for compliance with regulatory standards.
- Articles of association, if they are not available in public registers.
- Incident response system describing cybersecurity management processes, recording of breaches and how they are handled.
- Data access controls that establish methods for storing, protecting and monitoring sensitive information.
- Business Continuity Policy within Payment Authorization Latvia, which includes emergency response plans and their regular review for compliance.
- Statistical reporting, which regulates the collection and analysis of data on transactions, quality of service and levels of illegal activities.
- Information systems security, containing threat assessments, controls and mitigation strategies.
- Outsourcing operations control, ensuring monitoring of the quality of external contractors.
- Supervision of agents and branches, which establishes procedures for monitoring the operation of subsidiaries.
- Parent company documents if the supplicant for a Latvian payment license is a division of a regulated financial institution in another EU jurisdiction.
The final stage of the dossier submission is the provision of professional liability insurance or a bank guarantee if the claimant intends to carry out payment initiation or financial information management activities. When applying for a Latvian payment authorization, every detail of the dossier plays an important role, as the regulator assesses not only the current state of the company, but also its ability to function stably in the long term.
Regulator's appraisal of the applicant's application
After confirming the completeness of the submitted documentation, the competent authority proceeds to a detailed analysis of the request. The regulator is given three months to conduct a comprehensive review of the submitted information, but this period may be prolonged if missing information is identified or certain aspects need to be clarified. The main purpose of this stage is to make sure that the applicant meets the established criteria and is ready to fulfill all the obligations stipulated by the Latvian license in the field of money movement services.
Consideration of the application includes a comprehensive legal and financial due diligence, during which Latvijas Banka evaluates the submitted materials for compliance with the applicable regulations. Special attention is paid to the compliance of the management personnel with the preconditions of business reputation and professional competence, since the stability of future operations largely depends on the qualifications of managers.
Throughout the appraisal period, the applicant should respond promptly to possible inquiries from the regulator. During the analysis process, additional questions may arise that require clarifications or supporting documentation. In order to minimize possible delays, a responsible contact person is appointed, through whom prompt communication with Latvijas Banka is ensured. If any discrepancies are identified, the claimant is obliged to make timely corrections to the submitted materials, bringing them into full compliance with the requirements of the regulator.
If the regulator finds any issues while reviewing the payment license application, it sends a list of corrections. The company can fix the problems and update the documents without stopping the process. The review then continues with the updated information.
During this stage, Latvijas Banka may also meet with the company’s managers to discuss the corporate structure, control systems, and compliance. These meetings are important because the regulator wants to understand not just the paperwork, but the full vision of the business.
The final move of dossier assessment for the Latvian payment permit involves a comprehensive analysis of all the information received and making a final decision. After the expert review is completed, Latvijas Banka either approves the issuance of the permit or refuses it if the claimant does not meet the established criteria. Absence of comments at all stages of review significantly increases the probability of successful licensing within the planned timeframe.
Issuance of Latvian payment license
After a comprehensive examination of the submitted documentation, Latvijas Banka makes a final decision on issuing a permit to operate in the field of payment services in Latvia. The decision is based on a comprehensive assessment of the suplicant's compliance with the established regulatory requirements, as well as on the results of conducted inspections. These inspections take into account the corporate structure, financial stability, corporate governance structure and the effectiveness of internal controls.
The final phase of the licensing process for money movement services in Latvia culminates in an official decision, which may either approve or deny the application. If the outcome is favorable, the regulator issues a paper formally granting the organization the right to carry out the specified types of activities. Should any instances of non-compliance with legal requirements be identified, Latvijas Banka will issue a motivated refusal, clearly outlining the reasons that prevent the issuance of the Latvian payment license.
After the decision is made, the regulator notifies the applicant of the verdict and enters the relevant information into public databases. Information about newly licensed institutions is published both on the official portal of Latvian financial regulator and in the register of payment organizations maintained by the European Banking Association. This process ensures the transparency of licensing and confirms the legitimacy of the company's work in the segment of money transaction services.
Before starting to operate, an organization that has obtained a Latvian payment license is obliged to ensure that its operational processes comply with the approved corporate structure and the established regulatory standards. Among the key activities preceding the actual start of operations is the appointment of responsible persons for interaction with Latvijas Banka, as well as connection to the regulator's reporting system. This is necessary for timely provision of data on current operations, financial performance and compliance with regulatory requirements.
Supervision of payment operator by Latvijas Banka
Once the Latvian payment license is issued, the lawful entity is subject to the regulator's supervision in accordance with the rules established by local legislation and EU directives. Latvijas Banka conducts systematic monitoring to assess compliance with financial transparency standards, threat management and the weal of service users. Supervisory activities include both routine examination of reports and analysis of information provided in response to the regulator's requests. Special attention is paid to identifying potential violations related to non-compliance with regulations, changes in the business structure or non-compliance with the previously approved corporate governance configuration.
The holder of the Latvian permit in the remittance operations is obliged to ensure timely submission of summary documentation reflecting the main indicators of its activity, financial results, concomitantly with compliance of the internal policy with legal provisions. In case of receiving an official request from Latvijas Banka, it is necessary to promptly provide the required information and explanations on issues related to the institution's operation. Adjustments to the materials previously submitted to the regulator, including updates on the corporate structure, management and service delivery procedures, are mandatory. Any significant changes in business processes or management features should be registered and agreed with the supervisory authority.
For efficient interaction with Latvian payment license holders, Latvian financial regulator assigns a supervisor to each organization, who is responsible for coordinating supervisory activities and conducting regular inspections. The regulator checks whether the company’s activities meet current legal requirements, reviews the submitted documents, and may ask for extra information if needed. Regular checks help spot any issues early and ensure that the payment institution fixes any problems in its operations.

Supervisory procedures include obligatory informing Latvijas Banka about significant incidents affecting the stability of operational activities. Compliance assessment is carried out on an ongoing basis, which requires payment authorization holders in Latvia to strictly comply with the established obligations and regulatory monitoring procedures.
Timely provision of requested information, transparency in corporate governance issues and compliance with regulations significantly reduce the risks of claims from the supervisory authority. Questions regarding reporting procedures or other aspects of interaction with Latvijas Banka are subject to discussion with the appointed supervisor, who is authorized to explain regulatory norms and give recommendations on their implementation.
Costs of licensing of payment institution in Latvia
The financial obligations associated with obtaining a payment license in Latvia include several categories of costs. Initial application fees are paid at the time of submission of documents and cover the costs related to administrative and legal verification of the applicant. The amount of the fee depends on the type of license and the specifics of the services provided.
The regulatory fee for reviewing a request for authorization to conduct payment activities is EUR 5,000. This amount covers document review, capital source checks, corporate structure evaluation, and legal compliance. If the request is for a Latvian license to issue electronic money and the activity is limited to innovative services, the fee is reduced to EUR 450. This reduced fee supports companies developing new tech-driven financial solutions.
Organizations that have obtained a permit to operate in the sphere of payment services in Latvia are obliged to pay annual contributions to the budget of Latvijas Banka. The basic fixed fee is EUR 7000 every year. Additionally, a percentage of the turnover received from payment services is charged, which does not exceed 1.4% and is limited to a maximum amount of EUR 100,000. This mechanism allows the regulator to adjust the burden depending on the volume of transactions carried out on the market.
The minimum annual fee is lowered to EUR 3,000, if the licensee offers payment initiation or account information services. The variable part of the fee stays at 1.4% of turnover, but is capped at EUR 100,000.
Special conditions are provided for holders of Latvian payment license who develop and implement modern solutions in the area of electronic money services. During the first 3 years after procuring the license, the firm pays EUR 1000 annually, after which the standard settlement system is applied. This approach stimulates the development of technology-oriented projects that create new tools in the field of digital settlements.
Latvijas Banka annually updates the regulatory acts, defining specific settlement parameters applicable to all categories of financial market participants. The amount of the variable contribution is determined individually for every legal entity based on its financial performance and market share. The regulations additionally outline the procedures for settlement calculations, deadlines for contribution payments, and reporting obligations, ensuring full transparency of financial interactions between the supervisory authority and licensed payment institutions in Latvia.
Conclusion
Licensing of a payment institution in Latvia is a complex way that requires precise compliance with all established regulatory criteria. Any inconsistencies in the submitted documents may result in significant delays in the consideration of the request or even denial of authorization. Therefore, the preparatory stage plays a key role in the successful completion of the procedure.
A comprehensive approach is required to get a Latvian payment license, including a legal review of the corporate structure, analysis of the applicant's compliance with the regulator's requirements and development of a threat management system. Accurate submission of all needed information and timely response to Latvijas Banka's requests significantly increase the chances to finish the licensing process in the best possible time. Professional support of the process allows minimizing possible legal barriers, bearing in mind regulatory nuances and avoiding unnecessary delays.
Our company provides a full range of services on preparation, submission and support of requests for obtaining a payment license in Latvia. Experienced specialists analyze the peculiarities of each business, develop an optimal strategy for passing regulatory procedures and ensure interaction with Latvijas Banka at all stages. Turnkey support of the process allows the applicant to focus on the development of future payment activities without being distracted by complex legal aspects of licensing