Name
Global FinTech Guide
Country _ Name
Uruguay
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Politically the government is committed to increasing the use of this type of payment services, in line with the Law on Financial Inclusion. 

In its 2022 Roadmap for the payment system, the Central Bank of Uruguay (hereinafter, the “CBU”) lays down some important objectives aimed at strengthening and developing the payment system, in order to keep pace with financial innovation and technology that provides more efficient, safer and cost-effective means of payment.   

For that purpose, the CBU has undertaken to promote an efficient, modern, and secure development of the payment system, working together with industry agents, assuming a leadership role in the process and encouraging best practices, and to modernize the payment system in a spirit of promoting competition, openness and inclusion of new instruments and agents, allowing the development of new ventures, and promoting innovation.

Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

In order to provide payment services or ancillary services, the service provider must register before the CBU as Payment and Collection Service Provider (“Prestador de Servicios de Pago y Cobranza”) or have a wider license which comprises such services (e.g.: bank license). 

To obtain such registration/license, the applicant must submit certain information to the CBU regarding the company, its structure and business cycle, including:

    a) Company name, indicating type of company, fantasy name or trademark if any, real and special domicile, No. of registry before the local tax and social security authorities, phone, fax, email address and web page.
    b) Notarized copy of the company’s bylaws or articles of incorporation approved or in process of being approved.
    c) Identification data regarding the legal representatives of the company (full name, nationality, identification number and address).
    d) List of all company shareholders or partners, and persons that have the effective control of the company, indicating name, personal address, identification number, participation percentage and contributed capital.
    e) Senior staff, providing Curriculum Vitae, personal and working references in relation to the corporate purpose of the company and financial activity in general. This staff category includes board members, administrators, trustees, receivers, tax managers, commissioners by the board, CEO, general accountant, and professionals with a university degree that provide business-oriented advice to the board or the administration, on an ongoing basis.
    f) General Information of the company:

    • Company staff.
    • Hierarchical structure.
    • Links to other related entities either local or foreign.

    g) If applicable, accounting statements regarding the last financial year, issued according to the adequate accounting rules of Uruguay.
    h) Business cycle description, with specific
details of the operation, including the intended resources (information and fund flows).
i) Description of the internal control system to be implemented.
j) List of external service providers.
k) Technological platform assessment (hardware and software). To such effects certain specific information must be provided.
l) Manual of internal procedures (operations, timetables, fees, etc.).

In case it is deemed necessary, the CBU may require additional information.

Also, the information provided at the time of submitting the request for registration must be kept up to date, and any modification regarding it must be communicated to the CBU within certain terms.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

Over the last few years, the CBU has sought to strengthen the regulatory framework applicable to several licenses of the payment system (e.g., Electronic Money Issuing Institutions), encompassing different subjects such as anti-money laundering, KYC procedures, and outsourcings. It is likely that in the near future this framework extends to Payment and Collection Service Providers.

Economic conditions

Market size for payment services and biggest payment service providers

According to the latest Retail Payment System Report published by the CBU , between January and June 2021 a total of 299,826,729 retail transactions were recorded in the payment system, for a gross amount of UYU 7,477,438,000,000.00, apportioned as follows: 

    a) Checks, 1.72%
    b) Bank transfers, 17.24%
    c) Credit cards, 28.11%
    d) Debit cards, 41.20%
    e) Direct debits, 1.89%
    f) Electronic money, 9.84%

Moreover, 94,891,407 retail transactions were executed through Payment and Collection Service Providers, for a gross amount of UYU 563,070,000,000.00, excluding mobile and web payments.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

The significant development and solid regulatory framework of the payment system has been increasingly arousing the interest of many players including banks and FinTechs, both local and from abroad, who have seen in this market an opportunity to do business and expand. 

According to the CBU’s website, there are currently 11 Payment and Collection Service Providers on the market, and 13 Electronic Money Issuing Institutions, among other related licenses.

Authors

NameOrganisationEmail
There are no records.

Close

Choose country