Opportunities for Fintech businesses in the Czech Republic

Prague, 10 September 2018

Additional payment services in the area of electronic payments (i.e. payment initiation service and account information service through a website or mobile application) allowing third party providers to directly access customer’s bank accounts are newly regulated in Czech Republic. The providers of such services must obtain a license from the Czech National Bank.

The relevant regulation (Act No. 370/2017 Coll.) focusing on the online payment services adopted in the Czech Republic was based on EU Directive No. 2015/2366 called PSD 2. All providers of payment services must use unified terms when providing services connected to the payment accounts. Additionally, the customers are protected by a secured authentication system, which must combine at least two means of customer authentication (e.g., a password and a special code delivered to the customer’s mobile phone).

We note that both banks and Fintech companies should be involved in developing adequate processes.