FinTech Landscape in Poland – Summary

FinTech Landscape in Poland – Summary

Definition and Growth
The term “FinTech” encompasses both cutting-edge technologies used in the financial industry and the entities—startups, firms, or individuals—developing such innovations. In Poland, both interpretations are experiencing dynamic growth. The country has positioned itself as a regional frontrunner in adopting FinTech tools, such as mobile payments (e.g., BLIK, ApplePay, Google Pay), digital wallets, online payment solutions, lending technologies, deferred payment systems, and mobile banking apps. These services are utilized daily by millions of users. Additionally, many FinTech companies are branching out into adjacent sectors like cryptocurrency, insurtech, cloud services, big data, and artificial intelligence.

Regulatory Environment for FinTech in Poland

Licensing Categories
FinTech entities in Poland are subject to regulatory oversight and typically operate under various licenses, depending on their business model. These include licenses for small and domestic payment institutions, electronic money institutions, banks, investment firms, and entities dealing with virtual currencies.

Relevant Legislative Acts

PSD2 Implementation
The Revised Payment Services Directive (Directive (EU) 2015/2366), known as PSD2, forms the backbone of EU regulation for payment institutions. In Poland, it is transposed via the Act on Payment Services dated 19 August 2011, which also includes certain national modifications. Key areas governed include:

• Management of payment accounts
• Payment execution (e.g., direct debits, card transactions, bank transfers)
• Credit transfers and issuance/acquisition of payment instruments
• Money remittance, Payment Initiation Services (PIS), Account Information Services (AIS)
• Licensing: KIP, MIP, EMI, PISP, AISP
• Passporting within and outside Poland
• Oversight by the Financial Supervision Authority (KNF)

EMD2 Directive
Directive 2009/110/EC regulates electronic money institutions and is likewise implemented in Poland through the Payment Services Act.

Banking Law
The Act of 29 August 1997 outlines rules on setting up banks, including licensing, operational structures, insolvency proceedings, and supervisory responsibilities—primarily overseen by the KNF.

MiFID2 Framework
Directive 2014/65/EU governs investment firms across the EU. Poland implements it via the Act on Trading in Financial Instruments (29 July 2005). It covers:

• Permitted financial instruments
• Investment firm licensing
• Licensing of brokers/advisers
• Investor protection and compensation
• Passporting financial services

Anti-Money Laundering (AML)
Directives AML 4 (2015/849) and AML 5 (2018/843) define obligations for financial institutions, including cryptocurrency firms. Poland adopted these via the Act of 1 March 2018 on Counteracting Money Laundering and Terrorist Financing. The law addresses:

• Scope of obligated entities (banks, payment/e-money institutions, crypto companies)
• GIIF’s role as AML supervisory authority
• Required AML policies and risk-based due diligence
• Beneficial ownership register (CRBR) and crypto entity registry
• Suspicious activity reporting (SAR)

Consumer Credit Regulation
The Act of 12 May 2011 incorporates Directive 2008/48/EC, which standardizes consumer loan offerings in Poland. It specifies:

• Authorized lenders
• Caps on non-interest costs
• Loan types (e.g., payday loans, credit cards)
• Consumer withdrawal rights
• KNF’s lending institution register

The Financial Supervision Authority (KNF)

Overview
The Polish Financial Supervision Authority (KNF), created under the Act of 21 July 2006, supervises financial entities including banks, insurers, pension funds, investment firms, and FinTechs. KNF’s responsibilities include licensing, maintaining regulatory registers, market education, and publishing industry guidelines. Its operations are managed by a chairman and three deputies with the support of the UKNF office.

KNF’s FinTech Sandbox

On 25 November 2020, KNF introduced a test environment aligned with PSD2 regulations. Known as the Virtual Sandbox, it enables both regulated and unregulated participants to test Open API-based services in line with Polish and EU standards.

The Sandbox allows simulation of:

• Payment Initiation Services (PIS)
• Account Information Services (AIS)
• Fund availability confirmation (CAF)

A TPP license is not required for Sandbox access, and use is free of charge. Interested participants may apply via the KNF website. Standard access is granted for 90 days, with possible extensions.