NEO Finance, AB – the first company in Lithuania providing a payment initiation service through API
NEO Finance, AB is the first company in Lithuania providing a payment initiation service through API (Application Programming Interface) with the most popular banks in Lithuania. This requirement is indicated in Directive No. 2015/2366 of the European Parliament and the Council (hereafter – PSD2) as well as in Republic of Lithuania Law on Payments.
The requirements of PSD2 biding all banks operating in the European Union to provide access to customer accounts to licensed third parties (in most cases to FinTech companies) in order to provide a payment initiation service, have entered into force on 14 September, 2019. PSD2 requirements are very important for NEO Finance as payment initiation service is one of the strategic services of the company. It is expected that in 3-4 years NEO Finance will operate in at least 6 countries and will make at least 5 M transactions per month.
NEO Finance has integrated “Neopay”, a payment initiation platform developed by the company, with all banks in Lithuania which have provided APIs, in a very short time. Within a few weeks, integration with banks operating in Latvia and Estonia will be completed as well and a payment initiation service will be offered to all e-businesses and public service companies operating in the Baltic states.
“Transition period to a PSD2 compliant technology solution, where payment is made through the API through any bank without the need to sign a cooperation agreement with it, went quite smoothly. Consumers paying for services or goods on websites, such as ignitis.lt, vienasaskaita.lt, edrauda.lt, tiketa.lt and others, are already the first in Lithuania to try an innovative payment initiation service through most popular banks in Lithuania. There is no doubt that in the FinTech world this is a huge achievement that can only be equated with the importance of e-banking,” says Evaldas Remeikis, Chair of the Board of NEO Finance.
Chair of the Board