Payment institutions

Payment institutions are companies established for the purpose of providing payment services as their core business activity, but which may also pursue other economic activities (hybrid payment institutions).

Payment institutions are recognised as independent providers of financial services that are an important and potentially critical part of the financial system. Given their importance, payment institutions are required to operate securely and reliably.

To this end payment institutions are required to manage operational and financial risks, and to meet organisational, security, personnel and technical conditions. Payment institutions may only provide individual payment services if they have obtained a Bank of Slovenia authorisation for such services in advance in accordance with the Payment Services and Systems Act.

In addition to payment institutions, the Payment Services and Systems Act also recognises payment institutions with a waiver, whose payment services comprise solely the execution of money orders (remittances) of limited scope and merely as an ancillary activity available in connection with other services of the institution that are not payment services. Limited requirements regarding the management of operational and financial risks may be applied to payment institutions with a waiver, but only if the limited requirements are substantiated and approved by the Bank of Slovenia.

The Bank of Slovenia is a supervisory authority and misdemeanours body in connection with the operation of payment institutions and in respect of persons providing payment services without an authorisation.

Payment institutions may also provide payment services that they are entitled to provide in Slovenia, in another EU Member State or signatory state of the Agreement on the European Economic Area or in a third country, via a branch, via an agent or directly, with due prior notification of such intention or at the time of registration of such provision of services. In this case the payment institution is responsible for the legality and proper conduct of the branch or the agent.

Payment institutions of Member States may also provide payment services in Slovenia, via a branch, via an agent or directly. The Bank of Slovenia is notified of the provision of payment services in Slovenia by payment institutions of Member States by the competent supervisory authority of the payment institution’s home country (notification of payment institutions).

Under the Payment Services and Systems Act, the Bank of Slovenia administers a register of payment institutions and payment institutions with a waiver, including their agents and branches, and a list of notifications of payment institutions.