Republic of Srpska Drafts Law to Modernize Payments

The Republic of Srpska’s Ministry of Finance and Banking Agency have drafted a Law on Payment Services to modernize payments and increase competition by enabling new providers and innovations. The proposal aligns with EU PSD2 and supports SEPA accession. Public feedback is open until 31 October 2025. The reform advances EU integration and strengthens the region’s payment ecosystem

Objectives and impact
The reform seeks to increase competition in the payment services market by enabling the entry of new service providers and the introduction of innovative payment models. This is expected to enhance accessibility, affordability, and efficiency of payment services for users.

EU alignment
The proposal furthers harmonization with the EU’s Payment Services Directive (PSD2) and supports Bosnia and Herzegovina’s efforts to meet SEPA membership requirements. The law addresses regulatory and technical standards needed for integration into the Single Euro Payments Area.

Public consultation
Stakeholders and the public are invited to submit comments and suggestions to the Ministry of Finance (Department for the Financial System) via resorzafinansijskisistem@mf.vladars.rs by 31 October 2025.

This initiative represents a strategic modernization step, positioning Republic of Srpska closer to EU financial integration. By fostering open competition and aligning with PSD2, the law could expand fintech participation, enhance consumer protection, and facilitate SEPA compliance, ultimately strengthening the region’s payment ecosystem