Payment services
Under the Monetary Agreement, Andorra transposed Directive 2007/64/EC of the European Parliament and of the Council on payment services in the internal market into its legal system. The Monetary Agreement included Directive 2009/110/EC of the European Parliament and of the Council on the taking up, pursuit and prudential supervision of the business of electronic money institutions.
Based on this initial regulatory framework, the regulation of payment services aimed primarily to facilitate and improve security in the use of payment systems over the Internet and to strengthen the level of user protection against potential fraud and abuse, as well as to promote innovation in payment services and establish a more protective regime for users’ rights regarding security and transparency. It also introduced two new payment services that had not previously been regulated, namely payment initiation services and account information services. This regulatory framework was incorporated into Andorra’s legal system by means of an amendment to Law 8/2018, of 17 May. The consolidated text of the Law on payment services and electronic money was published on 13 February 2019 (Law PSD2).
Subsequently, within the framework of the Monetary Agreement with the European Union, the latest updates arising from European legislation on payment services have been incorporated, in particular Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021 on cross-border payments, and Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 on instant credit transfers in euro and amending the PSD2 framework.
In this context, Decree 415/2025 was approved, adapting the Andorran payment services framework to incorporate these new European provisions. The Decree aims to improve cross-border payments between Andorra and European Union Member States, strengthen transparency in transactions, particularly regarding fees and currency conversion, and ensure greater comparability and consumer protection.