The Central Bank of Paraguay has opened a public consultation on a proposed update to the regulation for Payment Initiation Service Providers operating in the Instant Payments System. The draft is designed to align the framework with Law 7503/2025 on the National Payments System and would formally incorporate fintech entities as providers of payment initiation services, while updating the authorization requirements and operating rules that apply to the service. The current rulebook for Payment Initiation Service Providers was approved in August 2023 under the Paraguay Payments Systems framework. The new law, promulgated on June 27, defines payment service providers as participants in systems administered by the central bank and gives the central bank authority to determine which payment providers and services are subject to its regulation, control, supervision and oversight. Against that backdrop, the draft focuses on authorization procedures, mandatory provisions for contracts between Payment Initiation Service Providers and clients, operating rules for payment initiation requests and measures to ensure compliance with those rules. It also places particular emphasis on information security, cybersecurity and fraud prevention, alongside compliance with instructions applicable to participants in the Paraguay Payments Systems framework.
Central Bank of Paraguay2025-07-14
Central Bank of Paraguay launches consultation on updated instant payments rules for payment initiation service providers and fintechs
The Central Bank of Paraguay is consulting on updated rules for Payment Initiation Service Providers in the Instant Payments System. The proposal aligns the regime with Law 7503/2025, brings fintech providers into scope and updates authorization, operational and security requirements. It also emphasizes information security, cybersecurity and fraud prevention.