Name
Global FinTech Guide
Country _ Name
North Macedonia
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

In North Macedonia, provision of payment services is a regulated activity, currently possible to be provided by banks, saving houses, branches of foreign banks, payment institutions, institutions for electronic money and financial companies which are holders of a relevant license. The Law on Payment Services and Payment Systems (“Law”) also recognizes several other entities as potential providers of payment services, although they are rarely used as such in practice, these include: (i) The National Bank of the Republic of North Macedonia (“NBRM”) when it does not act with monetary authority in accordance with the law regulating its organization and operations; (ii) the Treasury of the Republic of North Macedonia;(iii) the Treasury of the Health Insurance Fund of the Republic of North Macedonia and (iv) the European Central Bank and the EU central bank and the central banks from EU member states, when they are not acting under monetary authority. The applicable legislation provides for concrete activities which can be conducted by banks, saving houses, branches of foreign banks, payment institutions, institutions for electronic money and financial companies, respectively. Banks have a much wider scope of activities (including, among others, acceptance of deposits and other repayable sources of funds, lending in the country and abroad, trading in securities etc.). Payment institutions and institutions for electronic money can provide a certain range of payment services and some credit-lines/overdrafts as short-term loans exclusively for payments. Financial companies can carry out activities such as loan approval, credit card issuance and administration, factoring and issuance of guarantees, and can also provide advice in relation to the abovementioned activities, as well as lend movable and immovable property to third parties.

Banking activities, and the payment service that can be offered by payment institutions and/or institutions for electronic money can only be conducted by banks, saving houses, payment institutions and institutions for electronic money which hold a license issued by the Governor of the NBRM. Financial companies need to hold a license issued by the Ministry of Finance of North Macedonia (“MoF”) in order to carry out their activities.
North Macedonia has recognized the need for modernization of the financial sector and is working towards creating an environment which will allow for modern and alternative payment services to enter the market. In 2022 the new Law on Payment Services and Payment Systems was adopted and entered into force in January 2023. A significant number of directives and regulations of the European Union in the field of payment are transposed in the Law, which provides a list of payment service providers and payment services, and provides a better regulation of the relations between payment service providers and their users. Most importantly, the Law opens the gates for new players, namely those in the FinTech sector, in order to provide easier, faster, and cheaper payment methods. The banks were previously the only relevant providers of payment services, and now the market for payment services is liberalized by allowing the entrance of payment institutions and electronic money institutions (which are not banks) and which are offering new and innovative ways of payment. Additionally, payment service fees are now more transparent and comparable.

In December 2020, the NBRM conducted a FinTech survey, the results of which were published in a feasibility study, assessing the feasibility of implementing FinTech in North Macedonia. The aim of this survey was to understand the current landscape for the development of FinTech and alternative finance in North Macedonia while assessing the opportunities, barriers and challenges presented for innovation and new market participants. The survey found that 89% of the participants (from both the banking and non-banking sector) agree that there is a need for FinTech, which will bring greater levels of financial accessibility, more competition, bigger choice and benefits for individual consumers and small businesses.

In April 2023, the NBRM in cooperation with the European Fund for South Eastern Europe, published a FinTech-Strategy for financial regulators, 2023 – 2027, which should serve as the basis for the transformation of the financial system of North Macedonia led by the FinTech Sector in North Macedonia. It outlines a comprehensive plan to harness the opportunities and benefits of technological innovation in the financial system. Leading with the premises that all of the relevant stakeholders in the financial ecosystem should play their role in achieving the envisaged transformation of the financial system of North Macedonia by embracing the technological innovations in the finance world.
As of 6 March 2025, the European Payments Council Board has approved the inclusion of the Republic of North Macedonia in the geographical scope of the Single Euro Payments Area (“SEPA”
) payment schemes, making it the 39th participating country. By joining SEPA, North Macedonia will facilitate faster and cheaper transactions with European Union countries. This development is also expected to significantly accelerate the digitalisation of Macedonian payment service providers. SEPA membership fosters greater competition and innovation within the financial sector. However, in order to fully benefit from SEPA, Macedonian payment service providers are required to implement additional technical and regulatory adjustments to integrate into SEPA and align with SEPA standards. The integration of Macedonian financial institutions into SEPA has began in April 2025, with complete operational readiness expected by October 2025.


Legal affairs

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

Banks can be founded only by having a starting basic share capital of MKD 310,000,000 (approx. EUR 5,040,650), solely in the form of money and paid-in outright. In order to obtain a license, the bank should submit certain documents and information to the NBRM, including, among others:

  • draft Articles of Incorporation;
  • a strategic and operational plan of the bank, including projection of the financial statements for the following five (5) years;
  • draft name of the bank;
  • an amount of the starting basic share capital and statement that it is to be paid in;
  • sources of funds for payment of the starting capital;
  • a certificate by the Public Revenue Office of North Macedonia or, for foreign entities, a certificate by an appropriate institution for regular payment of taxes and contributions;
  • a certificate by a competent institution for regular payment of the public duties;
  • identity of the persons who intend to found a bank and the number of shares held by each of them;
  • evidence for the financial standing of the persons who intend to found a bank;
  • identity, education, experience and professional background of the nominated members of the Supervisory and Board of Directors;
  • an organisational structure of the bank;
  • internal control and risk management systems;
  • financial activities to be performed by the bank; and
  • information system and technical equipment of the bank.
The NBRM may require additional documents and information prior to issuing the license. The Executive Board of the NBRM (“Executive Board”) is obliged to either issue a temporary license or reject the application within 90 days as of the day when the application was submitted. After receiving the application, the Executive Board assesses whether the bank will be organised and capable to operate in accordance with the prescribed regulations, supervisory standards and transparency and safety principles, whether the bank meets the corporate governance and risk management standards, as well as the feasibility of the strategic and operational plan and the financial statements projection.
After obtaining the temporary license, the bank must fulfil additional conditions within 180 days in order to obtain the founding and operating license, including:

  • payment of the starting basic share capital;
  • preparation of a statute;
  • list of nominees with special rights and responsibilities, other than for the members of the supervisory board and the board of directors, including information on their identity, education, experience, and professional background;
  • employment plan including qualification structure and training of the bank's staff;
  • renting or purchasing business premises and equipment for operating and establishing an operation system;
  • preparation of operating policies and procedures of the bank, in writing; and
  • engagement of an audit company.
The bank needs to have an adequate level of own funds depending on the nature, type, and scope of financial activities and the level of risks arising from the conduct of such activities.
Registration costs include a fee for reviewing the application in the amount of MKD 600,000 (approx. EUR 10,000).
The Law opened the gate for new players on the market of payment services, including the payment institutions that can be founded in accordance with the Law. In order to acquire a license for providing payment services, a request must be submitted in front of the NBRM, accompanied by extensive list of additional documentation, as listed below:

  • Excerpt from the Trade Registry in scope of the Central Registry of North Macedonia;
  • The act of establishment of the company;
  • Adress of the company;
  • Evidence that the company has sufficient level of starting capital for conducting activities such as payment services, which can range from MKD 1,300,000 to MKD 21,700,000, depending on the type of the license and the types of payment services that would be offered, with evidence of the source of the funds for the capital:
Proof from the Central Registry confirming the amount of the initial capital as the company’s basic share capital;
A statement from the founders/owners, given under full criminal and material responsibility for the sources of the invested funds, i.e. the basis for the acquisition of the shares, with the attachment of appropriate proof of the sources of the funds (audit report, published financial statements, inheritance decision, confirmation from a bank or other financial institution on the amount and date of the invested funds, a document on the amount of salary and income earned on other grounds or other relevant evidence);
  • Program for work;
  • Business plan;
  • The way of protecting the money of the users of the payment services if their payment is not processed by the end of the next business day at the latest:
    • Depositing the money on a special account in the National Bank, or an account with one of the commercial banks/saving houses in North Macedonia. Or investment of the money in safe, liquid and low-risk assets;
    • A description of the investment policy that will ensure that the chosen assets are safe, liquid and low-risk;
    • The number of persons who have access to the special account and their jobs;
    • Control mechanisms to ensure that the funds of the users of the payment services/electronic money are separated from other creditors of the payment institutions/electronic money institutions, especially in case of bankruptcy or liquidation;
    • A copy of the draft agreement with the bank and/or savings house;
    • As alternative, the money can be protected by insurance policy or with a guarantee without possibility of objection and payable at the first call, the funds should have coverage or be guaranteed, at least in an equal amount to the one with which they would be protected if the funds were deposited in a bank or invested as provided above;
  • System of management;
  • Procedures for monitoring, resolving and acting upon occurrence of safety incidents. As well as procedures for handling complaints of the users of the payments services which will relate to the safety;
  • Procedure for keeping, controlling, monitoring and limiting the access to sensitive data for the payments made;
  • Plan for ensuring business continuity;
  • Procedures and systems applied to collect statistical data on operations, transactions and fraud;
  • Safety policy;
  • Procedures and systems of internal control;
  • Organizational structure of the company;
  • Affiliated entities;
  • Persons which are acting as managers, members of management board, or members of board of directors;
  • Confirmation from the Public Revenue Office for regular and diligent payments of taxes and contributions;
  • Proof of selection of an audit company that will audit the financial statements of the company for the year in which the request is submitted;
  • List of close affiliates and description of the way that the company is affiliated to them;
  • List of planned use of services from external parties for the planned transfer of the performance of operational functions related to the payment services, or the issuance of electronic money;
  • Description of the participation in payment systems, as well as a brief overview of the operating rules of these systems;
The National Bank may request additional information after it receives the full documentation stated above. Furthermore, the National Bank arranges interviews with the suggested managers, members of the management board, executive members of the board of directors.

A license for providing payment services with easy access can also be requested, whereas the volume of projected payment transactions for these institutions and the monthly turnover average presented for the next 12 months should not exceed MKD 25,000,000.

Registration costs include a fee for reviewing the application depending on the type of license vary from MKD 90.000 (approx. EUR 1,500) to MKD 200,000 (approx. EUR 3,000).

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

N/A


Economic conditions

Market size for payment services and biggest payment service providers

According to the latest data published by the NBRM, the total amount of 235 million cashless payment transactions have been conducted in North Macedonia in 2024 which amounted to MKD 7.167 bilion (approx. EUR 116.59 million), with an annual rise of the transactions of 12.7%. There has been a significant growth in the transactions conducted via payment cards, with annual rise of 14,3%. The payment cards transactions are a big part of the payment service market amounting to 67.4% of the total number of cash-less transactions. The biggest payment service providers in North Macedonia are the banks.

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

N/A



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