Name
Global FinTech Guide
Country _ Name
Finland
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Finland's attitude towards modern payment services is largely positive, with active engagement from the Ministry of Finance and the Finnish Financial Supervisory Authority (FIN-FSA) in promoting innovation while ensuring market stability. The government recognises the potential of FinTech to transform the financial landscape and is working to create an environment that promotes the growth of FinTech and mitigates the associated risks such as consumer protection.

Finland is committed to promoting a forward-thinking environment for financial services. However, Finland also aims to establish “ground rules” to ensure that modern payment services maintain customer trust and contribute to the overall stability of the financial system. According to the Bank of Finland's 2024 statistics, over 60 per cent of all card payments were made on a contactless basis (including payments initiated on an internet platform), while payments made with a microchip or magnetic stripe have been declining steadily in recent years.

Finland has more than 210 fintech companies in the fields of Payments, Cryptocurrencies, Blockchain, Insurance, Security & Compliance, APIs & Platforms, Data & Analytics, Customer Services & Acquisition, Financial Software, Wealth Management, Investing, and Financing. Financial software, back-end technologies, financing, and payments are some of Finland’s strongest fields.


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

Finland is an EU member state, and the regulation of payments services is mostly based on the EU level regulations and directives.

To provide payment services in Finland, FinTech service providers must comply with the Act on Payment Institutions (PIA) (297/2010) and obtain authorisation from the FIN-FSA. Key requirements include:

  • Authorisation by the FIN-FSA: Only authorised providers can offer payment services, ensuring compliance with regulatory standards.
  • Capital Requirements: Payment information service providers must maintain a minimum capital of EUR 50,000 for financial stability and risk management.
  • Notification for Account Information Services: These services require only a notification to the FIN-FSA, without the stringent capital requirements.
The FIN-FSA’s processing of authorisation is subject to a processing fee. Processing fees will be charged for both positive and negative resolutions. If the processing of an application is interrupted due to the applicant’s withdrawal of the application, a fee is collected for the costs that have arisen up to the point of withdrawal.

The FIN-FSA’s processing of authorisation is subject to a processing fee. Processing fees will be charged for both positive and negative resolutions. If the processing of an application is interrupted due to the applicant’s withdrawal of the application, a fee is collected for the costs that have arisen up to the point of withdrawal.

Further to the PIA, Finnish payment service providers must comply with regulation (EU) 2024/886 on instant payments (the Instant Payment Regulation) obliging them to (a) receive instant credit transfers, (b) ensure charge parity and IBAN name-matching services (both applicable as of the date hereof) and (c) send instant credit transfers (applicable as of 9 October 2025).

Pursuant to regulation (EU) 2022/2554 on digital operation resilience for the financial sector (DORA), from 17 January 2025 all Finnish-supervised banks, payment institutions, investment firms, insurers and other financial entities must implement a board-approved ICT-risk framework, incident reporting frameworks, an annual resilience test plan and a register of critical ICT third-party contracts. FIN-FSA has confirmed it will treat DORA compliance as a 2025 supervision priority.

In addition, certain anti-money laundering and data protection regulations will apply.

The Finnish government has recently introduced a new draft law which would tighten the definition of payment service providers to any entity that receives customer funds for onward transfer. However, under the proposed law, purely domestic payment service providers with monthly revenues of under EUR 3 million will be subject only to registration with the FIN-FSA as opposed to being required to procure authorisation.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

Digitalisation is transforming the structures and operating practices of society, and the financial sector is no exception. Increasing competition, regulatory reform and changing customer needs and expectations are encouraging financial companies to develop services and products based on new technologies for their customers. The FIN-FSA keeps track of technological advances and trends in the financial sector, accommodating its supervisory activities to reflect the development of the sector. The FIN-FSA is also the authorisation authority for financial companies. New service providers, such as FinTech start-up companies, apply for authorisation or registration with the FIN-FSA, as required.


Economic conditions

Market size for payment services and biggest payment service providers

There are currently 99 payment service providers under the supervision of the Financial Supervisory Authority (FIN-FSA). These providers range from large publicly traded companies to smaller start-ups. In addition to payment and credit card providers the list also includes major mobile service providers, transport companies, and food delivery services.


While detailed data on the size of the market or the exact size of the largest payment service providers is not publicly available, it is assumed that the largest players in the sector are banks, credit card companies, and telecommunication operators.

  • In Q1/2024, a total of 570 million card payments were made using Finnish payment cards.
  • A total of 111 million card payments were initiated on a computer or mobile device in the Q1/2024.
  • The total number of credit transfers made in the Q1/2024 was 3331 million.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

FinTechs and payment service providers must take into account the evolving cyber threats targeting digital payment infrastructures, which requires strong cybersecurity measures including compliance of data protection and data security regulations. Central banks, such as the Bank of Finland, maintain security frameworks and diverse payment options to ensure the stability of the financial system. 



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