Introduction 

Slovenia is a small European country with a relatively smaller population and is a part of the Eurozone and European Union. This gives it access to Euro based financial possibilities under SEPA across European countries. Over the recent years, Slovenia has made significant progress towards digital payments, mobile banking, real time rails as well as widespread fintech adoption. To become a part of the payment system or to make the best out of the available rails and resources, one needs to deeply understand the payment rails of the country and how they are interlinked, the role of SEPA makes an integral part too and hence needs to be explored. Through this article, we’ll do exactly that - understand the local rails, utilization by various sectors and cross border possibilities of these evolving systems. 

Understanding Slovenia’s payment infrastructure

To understand the payment rails of Slovenia, one needs to understand various layers which make up the economy including the regulatory framework, central payment industries and retail payment systems along with the wide array of payment facilitators, providers and institutions. 

Regulatory and legal framework

• The payment services, Services for Issuing Electronic Money and Payment Systems Act (ZPlaSSIED) is the main law governing payment services, issuance and authorization as well as licensing in Slovenia.
• Under this law, service providers must be authorized under the Central Bank to act as payment providers and electronic money institutions. 
• Slovenia has also imposed the EU's PSD2 directive enabling payment initiation services, account related services and customer and party authentication systems. 

Interbank clearing, payments and settlements system 

• BIPS - it is the national operator which handles instant credit card transfers domestically.
• SIMP-PS - it is used for clearing and settlement of domestic direct debits.
• Poravnava kartic - this system is used for settlement of card transactions in Slovenia.
• TARGET - Slovenija - this system is a part of EU/TARGET2 infrastructure for high value interbank payments, large amount payment flows and instant cross border settlement requirements via TIPS.

SEPA and SEPA Instant transfers in Slovenia 

SEPA stands for Single Euro Payments Area in Slovenia which is the core of credit transfers as well as direct debit standard for cross border and domestic transfers in Slovenia and the Eurozone covered under SEPA. Slovenia is an active participant of SEPA and standard SEPA payments are widely accepted and used. 

SEPA Instant Credit Transfer (SCT Inst) is also being adopted in Slovenia with holding both domestic instant payment schemes as well as cross border payment schemes. Slovenia also developed a domestic instant payment environment called Flik (a P2P mobile based solution) and is widely used for instant interbank transfers.   

Mobile Banking and digital wallets in Slovenia

Mobile banking in Slovenia is widespread and growing. Over the years, the number of independent mobile users has surpassed the number of online banking users. ‘VALU’ is one of the mobile wallet services in Soloveia which has become increasingly popular. Another aspect gaining traction is the payment cards especially the contactless cards are highly used in POS, online and public transport. Slovenia has a wide network of POS terminals accepting contactless cards and mobile NFC payments. P2P transfers have found a mobile solution channel called Flik which can be used to send money using mobile numbers or emails which are often connected via formally connected banking apps. 

What does financial innovation mean for Slovenia

Here’s is a breakdown of how financial innovation has helped consumers, businesses and fintechs in Slovenia;

1. For Consumers - Financial innovation means convenient and accessible payments, faster transactions through mobile apps and less usage of cash. Ability to pay via phone, card and online wallet make their operations seamless and ease down P2P transfers.  

2. For businesses - real time cash flow and faster payments clubbed with enhanced user experience has made the market stand strong for businesses. Financial innovation means less risk for delays. Potentially lower transaction costs and more opportunities to integrate payment services into sales channels.

3. For Fintechs - for fintechs and payment service providers, this innovation accounts for wide scale opportunities to build services and systems over the rails i.e. wallets, apps, P2P transfers, open banking, embedded finance, cross border payment tools, API based services and more. However these systems must meet regulatory requirements and comply with existing systems which have been built over reliability and trust. TransFi is one of the best examples of leveraging the technology and building rails on blockchain technology, these systems are not just compliant and transparent, but are cost effective, secure as well as super fast with round the clock availability.
   

Why do these rails matter - Conclusion 

For organisations including banks, fintechs and various platforms in Slovenia looking to leverage payments more broadly in Europe and across the world;

• Need to ensure that the systems are capable and compliant with SEPA instant transfers and adhere to associated messaging standards. 
• Have evaluated mobile banking, wallet integration and user friendly flows.
• Are capable of partnerships with domestic processors and clearing houses like BIPS, Bankart, etc.
• Make sure licensing and authorization are granted under ZPlaSSIED.
• Have monitored fee structures having competitive prices and enable instant payments. 

If you’re considering improving the payment rails and becoming a part of a wider system, integrating fintech, building and scaling payments business and upgrading infrastructures, contacting experts can make a significant difference in the journey. A partner like TransFi could be the best - whichever stage of payment system development you’re at. TransFi offers quick and accessible integrations with local payments rails, easy digital assets settlements and a worldview into currencies and payments methods used all across. TransFi is helping the many countries in the global realm embrace a better future with the ease of the best services and interface at power by connecting users with over 100+ currencies, 250+ local payment methods, and 80+ digital assets, giving both senders and receivers control, speed, and cost savings. Contact our team and become a part of something bigger! 

Frequently asked questions (FAQs)

1. How does SEPA work in Slovenia?

SEPA enables swift euro transfers within Slovenia and across Europe under a set of regulations governing these payments and facilitating fast settlements and lower costs. 

2. What are the instant payment means available in Slovenia? 

The major instant payment systems available in Slovenia include SEPA Instant credit transfers and easy transfers networks using TransFi both providing real time settlements and 24/7 availability. 

3. What’s the status of Mobile banking in Slovenia?

Most banks provide mobile apps and extended wallet services for instant transfer, QR payments and digital wallets in Slovenia. 

4. How do cross border payments work in Slovenia?

Major amount of cross border payments are facilitated by SEPA within Europe, non Euro transfers use TransFi or SWIFT for international settlements. 

5. Why is TransFi proven to be a useful resource for payment infrastructure in Slovenia? 

TransFi offers quick and accessible integrations with local payments rails, easy digital assets settlements and a worldview into currencies and payments methods used all across. TransFi is helping the many countries in the global realm embrace a better future with the ease of the best services and interface at power by connecting users with over 100+ currencies, 250+ local payment methods, and 80+ digital assets, giving both senders and receivers control, speed, and cost savings.