Central Bank of Latvia promotes direct SEPA participation for non-bank payment providers through its Electronic Clearing System

The Central Bank of Latvia has published a briefing for European fintechs on accessing the Single Euro Payments Area (SEPA) directly through its Electronic Clearing System (EKS), enabling non-bank payment service providers to execute instant and regular SEPA credit transfers via central-bank-operated infrastructure. Direct EKS participation allows payment and e-money institutions to send transfers to any payment service provider reachable within SEPA without relying on intermediary banks, supporting consistent and transparent settlement. The central bank reported that ten European non-bank payment service providers have already joined the EKS and more than ten are preparing to connect; firms can also begin technical integration and testing before obtaining a licence, using either third-party connectivity services or in-house solutions. The note also highlighted two related services: the Instant Verification Service, developed in line with Regulation (EU) 2024/886 and the European Payments Council Verification of Payee scheme for real-time IBAN and payee-name or identifier checks with an option to delegate the responding side to the central bank, and the Instant Payment Laboratory as a testing environment for payment solutions and related services.