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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 provided by banks and financial companies which are holders of a relevant license. The applicable legislation provides for concrete activities which can be conducted by banks and financial companies, respectively. While 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.), 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 can only be conducted by banks which hold a license issued by the Governor of the National Bank of the Republic of North Macedonia (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 recognised the need for modernisation of the financial sector and is working towards creating an environment which will allow for modern and alternative payment services to enter the market. Currently, a draft Law on Payment Services and Payment Systems (Draft Law) has been prepared and is expected to enter into parliamentary procedure by the end of Q1 of 2022. A significant number of directives and regulations of the European Union in the field of payment are transposed in the Draft Law, which will expand the list of payment service providers and payment services, and better regulate the relations between payment service providers and their users. Most importantly, the Draft Law will open the gates for new players, namely those in the FinTech sector, in order to provide easier, faster, and cheaper payment methods. The banks as current providers of financial services will be digitalised, and the market for payment services will be liberalised by allowing entrance to payment institutions and electronic money institutions (which are not banks) and which will offer new and innovative ways of payment. Additionally, payment service fees will become more transparent and comparable, and interbank payment card fees will be limited.
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.
Legal affairs
Obligations and requirements to provide payment services or ancillary