Estonia seeks modernising law on payment and E-money institutions
As the Estonian government pushes to regulate emerging payment services and increase the security requirements of online payments, the Estonian cabinet of ministers have backed a bill of amendments to the Baltic country’s Payment Institutions and E-money Institutions Act.
«The rapid development of the market of payment services, specifically card, online and mobile payments, has created the need to update the law,» Minister of Finance Toomas Tõniste said. «The consumers in the form of new payment services will have additional opportunities to pay for their purchases online and monitor their financial status.»
To increase competition, the bill will introduce payment initiation and account information services among the payment services, the Estonian Ministry of Finance stated.
The bill of amendments will also enhance the security measures concerning online payments so that payment service providers will have to implement so-called strict authentication requirements when identifying a customer and the use of existing password cards will be limited as the cards are simple to be copied.