The Growth of Open Banking in Lithuania: What It Means for Businesses

Lithuania is shaping the future of fintech in Europe. With open banking in Lithuania expanding rapidly, the country has built a thriving financial ecosystem that drives innovation and seamless digital transactions. It is home to 263 fintech companies, 18 banks and a population where nearly 80% rely on online banking for e-commerce, mobile shopping and bill payments.

The Bank of Lithuania’s CENTROlink system further enhances this landscape by enabling direct access to SEPA Instant payments, ensuring fast, secure and cost-efficient transactions across Europe. As open banking adoption accelerates, businesses can integrate real-time financial services to scale operations efficiently.

Here’s a closer look at the key players, regulatory landscape and why now is the time to for businesses operating in or entering the Lithuanian market to integrate open banking solutions.

The Open Banking Landscape in Lithuania

As one of the earliest adopters of PSD2 in 2018, Lithuania has positioned itself as a leader in open banking. Banks are required to provide secure API access to third-party providers (TPPs), driving innovation and improving financial integrations.

Today, the Bank of Lithuania’s API register includes 24 bank APIs and 150 registered TPPs as of Q2 2024, reflecting rapid market expansion. With PSD3 and PSR1 set to take effect in 2026, Lithuania’s open banking overview points to even greater improvements – higher API quality, stronger security measures and more standardised processes.

Open Banking Regulation in Lithuania

Lithuania’s regulatory approach ensures security, innovation and compliance, making it one of the most fintech-friendly markets in Europe. With clear guidelines for open banking providers in Lithuania, businesses can integrate seamless payment solutions while meeting strict financial regulations.

Regulatory Compliance

Businesses must adhere to PSD2 and GDPR and implement Strong Customer Authentication (SCA). Approval from the Bank of Lithuania ensures secure financial operations across payment processors in Lithuania.

Fintech-Focused Policies

The Bank of Lithuania fosters innovation through a regulatory sandbox, allowing fintechs to test services in a controlled environment. Its newcomer program supports international businesses, making it easier for payment gateways in Lithuania to enter the market.

Real-Time Payment Access

The CENTROlink system provides direct access to SEPA Instant payments, helping payment processors in Lithuania facilitate faster, more efficient transactions across Europe.

Security & Data Protection

Banks and fintechs must implement multi-factor authentication and real-time fraud monitoring to ensure GDPR-compliant and secure transactions, strengthening trust in open banking providers in Lithuania.

By balancing strict compliance with fintech-friendly policies, Lithuania has created a secure, efficient and scalable open banking ecosystem. This regulatory framework makes Lithuania a prime hub for businesses expanding in digital finance.

Payment Infrastructure in Lithuania

Lithuania’s payment ecosystem has come a long way. Once dominated by traditional banking systems, it’s now a dynamic hub for instant transactions, seamless integrations and smarter payment solutions. With open banking in full swing, businesses can move money faster, cut costs and provide customers with frictionless payment experiences.

With real-time payment capabilities and direct bank integrations, Lithuania’s financial infrastructure is built for businesses that want to optimise their payment processes. Open banking allows for greater flexibility, giving companies the tools to offer customers faster, more secure ways to pay.

The Future of Open Banking in Lithuania

Lithuania’s open banking market is expanding fast, with a digital banking sector projected to generate €94.04 million in net interest income by 2025. Growth is steady at 4.19% annually, driving the market towards €110.74 million by 2029.

API-Driven Financial Services

Lithuania is leading the way in API-driven financial services. Businesses are using APIs to enable instant payments, streamline financial data access and enhance security. As open banking evolves, the implementation of APIs is shaping the future of digital finance.

Embedded Finance on the Rise

APIs are streamlining payments and financial data access, while embedded finance is reshaping how services are delivered. More businesses are integrating banking and payment solutions, making transactions faster and more seamless.

With Lithuania’s e-commerce market set to grow 22.22% by 2029, reaching 1.12 million users, demand for instant, low-cost bank payments are rising. Businesses are turning to open banking to simplify checkouts, cut costs and enhance customer experience.

Embedded finance is making payments faster, more accessible and more efficient – keeping businesses ahead in a digital-first economy.

AI-Powered Banking

With Lithuania launching an AI sandbox, businesses now have a dedicated space to refine AI-driven fraud detection, risk analysis and financial automation. This move aligns with fast-evolving EU AI regulations, giving fintechs and banks a secure, structured environment to test innovations in open banking and compliance-driven AI solutions.

Lithuania is driving open banking forward with API-powered payments, embedded finance and AI-driven security. As regulations evolve and adoption grows, businesses have the opportunity to streamline transactions, cut costs and scale in a rapidly advancing digital economy.

Benefits of Open Banking in Lithuania

Lithuania has built one of the most advanced open banking ecosystems in Europe. With direct access to financial data and seamless payments, businesses and consumers can move money faster, cut costs and make smarter financial decisions.

Instant Bank Payments

Open banking enables real-time transfers, ensuring businesses receive payments without delays. Faster transactions improve cash flow and reduce failed payments, making financial operations smoother and more predictable.

Lower Fees

By eliminating unnecessary intermediaries, open banking reduces transaction costs for businesses. Direct bank-to-bank payments mean fewer processing fees and lower expenses for payment collection.

Stronger Security

Strict compliance with PSD2 and GDPR ensures high-security standards for every transaction. With advanced authentication and encryption, businesses and consumers are better protected against fraud and data breaches.

Faster Checkout

Open banking removes friction in the payment process. Seamless authentication and direct bank payments reduce abandoned transactions, leading to higher conversion rates and a smoother customer experience.

Easier Expansion

Lithuania’s open banking network connects businesses to the European market with minimal barriers. Multi-currency support and streamlined cross-border transactions make scaling operations across the EU more efficient.

Money should move as fast as business does. With open banking in Lithuania, payments are instant, fees are lower and financial data puts businesses in control. Companies using it are operating more efficiently and scaling with confidence.

Why Businesses in Lithuania Choose Noda for Open Banking

Lithuania is leading the way in open banking, creating new opportunities for businesses to streamline payments and improve financial management. To stay ahead, companies need a payment gateway that offers more than basic transactions.

Noda connects with Lithuania’s top banks, including SEB, Swedbank and Luminor, covering 99% of banking customers. This seamless integration allows businesses to move money faster, reduce costs and gain real-time financial insights.

As a trusted Open Banking provider in Lithuania, Noda delivers a seamless payment processor that integrates effortlessly into existing systems.

Here’s how Noda helps businesses:

• Instant A2A Payments and Payouts – Direct bank transfers without card networks, lowering fees and improving conversion rates.
• Seamless API Integration – A ready-to-use solution for real-time payments, financial data access and automated transactions.
• Smarter Financial Insights – Access real-time transaction data for better cash flow management and personalised financial services.
• Built-in Compliance & Security – Automate KYC, fraud prevention and wealth verification to meet Lithuania’s regulatory standards.
• Scalability Across Europe – Connect with 2,000+ banks in 28 countries for easier cross-border transactions.

Fast payments are just the beginning. Noda gives businesses the power to move money instantly, automate financial operations and scale with confidence – all in a secure, compliant environment.