Direct SEPA Connection via CENTROlink for Fintechs

Single Euro Payments Area (SEPA) is an EU initiative that harmonises electronic euro payments, so that paying in euro across borders is as easy as paying at home. SEPA covers EU/EEA countries and a number of other European countries, including the United Kingdom and Switzerland.

CENTROlink is a payment system operated by the Bank of Lithuania (the central bank and a member of the Eurosystem), providing the payment gateway to the Single Euro Payments Area (SEPA). The Bank of Lithuania provides technical access to SEPA for banks and financial institutions via its own infrastructure.

Direct access to SEPA through CENTROlink for non-banks. Payment service providers (PSPs) licensed in the EEA, including payment institutions and electronic money institutions, can connect to SEPA directly through CENTROlink without an intermediary commercial bank. CENTROlink processes a wide range of SEPA schemes, including credit transfers, direct debits and instant payments, at low cost.

Who can join SEPA through CENTROlink. A Lithuanian licence is not required. Credit institutions, payment institutions and electronic money institutions established in the EEA can apply for direct participation in CENTROlink.

Why CENTROlink for direct SEPA access

• Availability 24/7/365. SEPA Instant Credit Transfers (SCT Inst) are processed around the clock, every day of the year.
• Low cost. SEPA Credit Transfer (SCT) and SCT Inst: EUR 0.003–0.012 per payment, depending on monthly volume. SEPA Direct Debit (SDD): EUR 0.0035–0.025 per payment from 1 January 2027.
• Linked with the European payment systems STEP2, RT1 and TIPS through a single integration.
• No limit on the number of IBAN accounts.
• Reduced counterparty credit risk. Payments are made through the central bank. Each payment is covered in advance by funds in the participant’s own account at the Bank of Lithuania, reducing exposure to the credit risk of other participants.
• Individual client IBAN accounts. Generate and open individual IBAN accounts for your clients in your own system, without relying on a commercial bank.
• Proxy Lookup Service. Payment initiation using the payee’s mobile phone number or email address linked to their IBAN account.
• Verification of Payee (VoP). Check that the payee’s name matches the IBAN before the payment is sent, as required under the EU Instant Payments Regulation. Built into CENTROlink, so no separate provider is needed.

CENTROlink participation is subject to the Bank of Lithuania’s onboarding and assessment process, including KYC and risk assessment.

Direct vs indirect access to SEPA via CENTROlink

Payment service providers that do not join CENTROlink directly can connect as addressable BIC holders (ABIC holders).

ABIC holders with an existing agreement with the Bank of Lithuania can operate under it until 30 December 2026. For important objective reasons, the Bank of Lithuania may allow an ABIC holder to operate until 30 June 2027.

From 1 January 2027, ABIC holders are registered by CENTROlink participants. To do this, a participant must have been in CENTROlink for at least 12 months and have processed at least 100,000 payment orders in the last 12 months. This does not apply if the ABIC holder belongs to the participant’s group and has the same ultimate beneficial owners. The participant must also have adequate anti-money laundering, fraud prevention and sanctions controls, confirmed by an independent audit. The participant checks the provider before applying and stays responsible for it.

ECOVIS services for SEPA connection via CENTROlink

We have supported multiple payment and electronic money institutions through the CENTROlink connection process with the Bank of Lithuania.

• Assessment of the client’s business model, business needs and associated risks.
• Advice on the requirements for CENTROlink connection.
• Organisation of an introductory meeting with the Bank of Lithuania.
• Assistance in authorisation procedures, including completion and submission of the KYC questionnaire to the Bank of Lithuania.
• Assistance in the preparation of the client’s internal AML/KYC procedures.
• Assistance in obtaining SWIFT/BIC codes.
• Representation during the SEPA connection procedure.
• Independent AML audit of the client’s AML/CTF framework.
• DORA compliance: ICT risk management and operational resilience.
• CENTROlink audit for participants with ABIC holders: independent audit of the participant’s AML/CTF, fraud prevention and sanctions measures, required for registering ABIC holders and repeated at least every two years.
• Independent audit of compliance with the requirements for participation in payment systems, when requested by the Bank of Lithuania.

SEPA connection via CENTROlink: how long does onboarding take?

According to the Bank of Lithuania, connecting to CENTROlink involves four stages:

• Introduction and NDA: up to 1 week
• Documentation and decision: about 1 month
• Integration and testing: about 2 months
• Agreement and start of payment processing

This is an indicative timeline. Under the CENTROlink Rules, the Bank of Lithuania makes its decision within 20 working days after receiving all required documents and any requested clarifications.

SEPA via CENTROlink fees: how much does a direct connection cost?

From 1 January 2027, SEPA Direct Debit (SDD) through CENTROlink is significantly cheaper. The flat €0.04 fee per payment is replaced by tiered fees, down to €0.0035 per payment from 1 million payments a month – up to 91% less. SCT and SCT Inst fees stay tiered, from €0.012 down to €0.003 per payment. In both cases, the more payments you process per month, the lower the fee per payment.

* SCT and SCT Inst payment orders are counted together. Fees apply to each payment order sent or received.

Other fees

• Connecting a BIC to CENTROlink (SCT scheme): €7,000 one-off (€1,000 for the fourth and each further BIC of the same participant)
• Connecting a BIC to an additional scheme (SCT Inst, SDD): €1,000 one-off
• Changing the name or BIC code: €500 one-off
• Minimum monthly fee per BIC: €1,000 for SCT and SCT Inst, €1,000 for SDD
• Annual participation fee: €2,000

SEPA connection via CENTROlink: what documents are required?

To join CENTROlink directly

• Application to join CENTROlink.
• Copies of documents confirming your right to provide payment services.
• Completed participant KYC questionnaire.
• Payment and electronic money institutions licensed in Lithuania: a compliance report showing how they meet the requirements for participation in payment systems.
• Payment and electronic money institutions licensed in another EEA country: documents prepared under that country’s rules confirming compliance with Article 35a of PSD2.
• Payment and electronic money institutions: the maximum amount of financial collateral with a detailed calculation, and the number(s) of the client funds safeguarding account(s).
• At the Bank of Lithuania’s request: an independent audit report on compliance with these requirements.

To register an ABIC holder (submitted by the CENTROlink participant)

• Application to register the ABIC holder.
• Copies of documents confirming the ABIC holder’s right to provide payment services.
• Legal opinion on the ABIC holder’s capacity.
• Country opinion, if the ABIC holder is registered outside the EEA (not needed if the Bank of Lithuania already holds a valid one for that country).
• If the ABIC holder belongs to the participant’s group: documents proving that both have the same ultimate beneficial owners.
• If the ABIC holder is a payment or electronic money institution: the maximum amount of financial collateral with a detailed calculation, and the number(s) of the client funds safeguarding account(s).
• Written confirmation signed by the participant’s head that:
  • the ABIC holder meets the participation requirements;
  • the ABIC holder, its managers and beneficial owners are not subject to sanctions under Lithuanian law or OFAC lists;
  • no beneficial owner holding a qualifying holding, alone or together with others, is a Russian or Belarusian citizen or resident, unless entitled to reside in the EU or EEA;
  • no company in the ABIC holder’s group is established in Russia or Belarus.
• Independent audit report on the participant’s anti-money laundering, fraud prevention and sanctions controls, renewed at least every two years.