xpate, an Electronic Money Institution (EMI) that provides payment services, has become the first non-banking entity in Latvia to integrate and gain direct access to Latvijas Banka’s Electronic Clearing System (EKS) for processing SEPA payments. Previously, access to the EKS was a privilege of classic banks.

As of today, xpate can now independently process SEPA payments for seamless euro payments across Europe. Achieving service level to its customers similar to those provided by classic banks in respect to processing SEPA transactions, xpate gains full control over these payments, improving reliability and providing faster client access.

Shifting market dynamics

Direct participation in the EKS – the payment system created and maintained by Latvijas Banka to ensure the execution of instant and other payments – has until recently been limited to the banks and the State Treasury.

As of October 17, 2024, licensed payment and EMI institutions can also gain direct access to the EKS. xpate sets a precedent for other PSPs, with Latvijas Banka focused on building an internationally competitive financial sector through innovation and collaboration.

Driving efficiency and speed

The integration was completed in a record three months, with the European Payments Council approving xpate’s application to join the SEPA Credit Transfer and SCT Instant schemes via Latvijas Banka’s EKS connection.

Successful test payments were completed through Inventi, which provides the technical integration to the SEPA clearing system.

Commenting on the successful technical integration with Latvijas Banka’s EKS system, Jonas Našliūnas, Head of Product at Inventi, said:

“We are honored by the trust xpate has placed in us and deeply appreciate Latvijas Banka’s cooperation throughout the EKS integration. Successfully onboarding xpate in just three weeks highlights our commitment to delivering seamless, efficient payment solutions.“

Removing the dependency on commercial banks, xpate’s clients, which comprise digital businesses, will benefit from a more streamlined and affordable service.

Reflecting on this achievement, Mike Shafro, CEO of xpate, said:

“We share Latvijas Banka’s ethos of innovation, and are proud to have created a template for other PSPs and EMIs to follow. Securing direct access to SEPA is a game changer for xpate and our clients, enabling us to deliver a more competitive service and continue to strengthen Latvia’s position as a leading fintech centre.“

xpate intends to expand direct SEPA capabilities going forward and strengthen its partnership with Latvijas Banka for future fintech innovations.