The year 2025 is shaping up to be a pivotal one for the digital sector—not only in Bulgaria but across the European Union—as several major regulatory changes are anticipated. “2025 will mark a period of accelerated digitalization and heightened regulatory demands in the payments ecosystem,” said Goran Angelov, Founder and CEO of IBS Bulgaria, in an exclusive statement for DIGI PAY. One of the most significant developments will be the expected finalization of the Payment Services Regulation and the third Payment Services Directive (PSR1/PSD3), which will introduce new standards for payment security and support the shift from open banking to open finance.

Angelov also highlighted the critical role of the updated Digital Identity Regulation (eIDAS 2.0), which is set to enhance access to financial services through secure electronic identification mechanisms.

In addition, new regulations for crypto-assets and central bank digital currencies (CBDCs) are expected, which will significantly shape the future of the payments ecosystem. For businesses, this will not only bring more compliance requirements but also open up new opportunities for innovation and competition, Angelov explained.

He emphasized that Bulgaria stands to benefit from joining the eurozone, particularly by eliminating currency risk in euro-denominated transactions and reducing transaction costs for both businesses and consumers. “We anticipate deeper integration with SEPA (Single Euro Payments Area) and SEPA Instant, which will further accelerate and simplify cross-border transfers,” he noted.

The single European market will unlock fresh opportunities for competition and innovation among banks and fintech companies, encouraging the development of new and competitive solutions for international payments. “Digital wallets and emerging technologies will play a key role in accelerating transactions and reducing operational costs,” Angelov added.

The state should invest in strengthening oversight and regulatory frameworks, ensuring effective transaction monitoring and implementing stricter identification measures. Centralized systems for tracking suspicious activity, along with better coordination between banks, the Bulgarian National Bank (BNB), and regulatory authorities, will be key, Angelov emphasized.

Education for both consumers and businesses is equally critical—people need to be aware of how to recognize fraudulent schemes. Additionally, the adoption of AI-driven tools for anomaly detection in payment systems will play a crucial role in mitigating the risk of financial crime.

Cyber Threats Are Growing

This year will bring new challenges in cybersecurity. The main risks will stem from social engineering, fake financial intermediaries, and money laundering schemes involving crypto assets. With the rise of advanced technologies, fraudsters are becoming increasingly sophisticated, employing tools such as deepfakes, AI-generated voices, and complex cyberattacks. These threats are further amplified by the emergence of forged digital identities, making robust digital security more vital than ever.

Prevention and security in the financial sector will increasingly rely on stricter regulations, such as enhanced Know Your Customer (KYC) procedures and robust anti-money laundering (AML) measures. In this context, artificial intelligence (AI) will play a key role—particularly in developing behavioral analytics within banking systems. This will enable faster detection and prevention of potential threats, Goran Angelov adds.

AI is already being implemented by banking institutions in Bulgaria, most visibly through chatbots and automated customer service solutions. Artificial intelligence has the potential to make payments faster, more secure, and more accessible. However, it should not be seen as a universal solution,” Angelov emphasizes. The technology can significantly reduce operational costs for banks and accelerate financial processes, but it must be used responsibly and strategically.

The line is drawn where AI begins to operate without human oversight. Banks and fintech companies must carefully combine automation with transparency and ethical principles, ensuring AI's deployment benefits consumers.

A formidable challenge will be securing payments in the age of quantum computing and intensifying cyberattacks, Angelov explained. The industry will be compelled to invest in new cryptographic standards and advanced identification methodologies.

Additionally, the integration of emerging regulations such as MiCA (Markets in Crypto-Assets) and DORA (Digital Operational Resilience Act) will require significant resource allocation. However, these transformations will strengthen the financial ecosystem's resilience and create opportunities for more innovative services," commented the founder of IBS Bulgaria.