Bulgaria has more than 6 million people and sits at a crossroads of East and West, with neighbors that include Turkey and Romania. As an EU member, Bulgaria adheres to strong regulations such as the General Data Protection Regulation (GDPR). The country is also a member of the Single Euro Payments Area (SEPA), which simplifies cross-border transactions within the EU.

Below, we’ll explain what businesses that plan to enter the Bulgarian payments system should consider, including:

• Embracing local preferences
  
• Following regulations
  
• Building an enjoyable customer experience
  

The state of the market

Though Bulgaria is part of the EU, it is not a member of the eurozone. The national currency is the lev (BGN). Bulgaria’s financial sector is anchored by several major banks that shape the country’s payment environment, including UniCredit Bulbank, a subsidiary of UniCredit Group, and DSK Bank.

In addition to EU oversight, Bulgaria’s financial stability and adherence to regulatory standards are governed by institutions including the Bulgarian National Bank (BNB) and the Financial Supervision Commission (FSC). The FSC regulates financial markets, overseeing insurance, capital markets, and the nonbanking financial sector.

In 2024, roughly 15% of Bulgarian adults didn’t have a bank account. Meanwhile, online shopping has been popular in the country, with an estimated 53% of the population making online purchases in 2023.

Payment methods

Customers in Bulgaria use many forms of payment to make purchases. Though the country has been adopting more technologically advanced methods, cash has remained an important payment method.

Usage

Cash has been prevalent in Bulgaria: Approximately 78% of point-of-sale (POS) transactions in 2021 were made with cash.

Though electronic methods have been gaining traction, usage can lag that of other European countries. In 2024, there were 1.2 million credit cards in circulation in Bulgaria, compared with more than 6 million debit cards. Customers frequently use these cards online, and Bulgaria’s ecommerce market revenue is expected to exceed $1.6 billion US dollars (USD) in 2025.

Like in other European nations, Revolut is a popular digital payment method, as are apps for local options such as Bulbank Mobile and DSK Smart.

BORICA AD is a leading local payment business, which has built modern infrastructure for local banks and card systems, including settlement and interbank functions. It conducts transactions in BGN and euros.

Popular B2C payment methods in Bulgaria

• Cash
  
• Debit cards, credit cards
  
• Digital wallets such as Google Wallet and Revolut
  
• BORICA AD’s BLINK, an instant payment service
  

Popular B2B payment methods in Bulgaria

• Debit cards, credit cards
  
• BLINK
  
• Bank transfers
  
• Cash
  

Trends

Though cash remains popular in Bulgaria, it no longer holds the near-monopoly on everyday payments it once did. In 2014, 93% of POS transactions were conducted using cash. That figure dropped to under 80% in 2021.

With the introduction of BLINK and other related electronic payment methods, Bulgaria is taking important steps to join the eurozone, which would further digitize its financial system.

Ease and friction of entry

The government and banks in Bulgaria are taking steps to create a more business-friendly economy. However, businesses operating in Bulgaria should keep some factors in mind.

Taxes

Customers and businesses in Bulgaria are subject to value-added tax (VAT), which is usually levied at a standard rate of 20% for most goods and services. Customers pay VAT when they make a purchase, and businesses are responsible for collecting and remitting the tax to the government. Failure to remit VAT on time or doing so inaccurately can result in substantial fines for businesses and might lead to audits and legal consequences.

Chargebacks and disputes

Bulgaria, like other EU member states, adheres to customer-centric regulations in many areas, including chargebacks and payment disputes. Customers in Bulgaria enjoy protections under the Consumer Protection Act, which places the burden of proof primarily on businesses to demonstrate the legitimacy of a transaction. This process favors customers, making it easier for them to dispute transactions.

As a member of SEPA, Bulgaria follows specific rules for chargebacks related to direct debits. SEPA regulations stipulate that customers are entitled to a refund for any unauthorized or incorrect direct debit transactions, provided they request it within eight weeks.

International payments

International payments are common in Bulgaria. Here’s what that looks like:

• Currency conversion: Revolut, Wise (formerly known as TransferWise), and Paysera are popular third-party fintech solutions in Bulgaria. Currency conversion in Bulgaria operates under EU regulations, specifically the revised Payment Services Directive (PSD2), which mandates transparency in conversion rates and fees, ensuring financial institutions and payment providers disclose all costs associated with currency conversion. These costs might include service fees and the exchange rate markup over the interbank rate. Disclosures of this kind are required on websites and at the physical point of transaction.

• SEPA transfers: As part of the EU, Bulgaria is part of SEPA. This simplifies bank transfers denominated in euros, making cross-border transactions within the eurozone easier.

• International trade relationships: Bulgaria trades heavily with other EU nations, many of which use the euro (though some—including Romania—do not). It also has substantial ties to Turkey, which uses the lira.

Security and privacy

Bulgaria’s membership in the EU means it must adhere to the bloc’s strict security and privacy rules. These rules set a high bar for businesses and significantly benefit customers.

• Data protection laws: Similar to other EU member states, Bulgaria adheres to the GDPR, which sets stringent standards for the protection of customer data, emphasizing the need for explicit consent for data collection and providing individuals with the “right to be forgotten” by having their personal data erased.

• PSD2 compliance: Bulgaria follows the PSD2, an EU directive aimed at improving the security of electronic payments. PSD2 mandates Strong Customer Authentication (SCA), requiring two-factor authentication for most transactions. This stringent authentication process adds a layer of security to payment transactions.

• Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws: Financial institutions operating in Bulgaria are required to implement AML and CTF measures such as monitoring and reporting suspicious financial activities in compliance with EU directives. Noncompliance with AML and CTF regulations can lead to severe penalties.

• FSC: The FSC is Bulgaria’s regulatory authority responsible for overseeing the financial sector, including payment service providers. The FSC is tasked with safeguarding the interests of customers and maintaining the integrity of the financial system.

Key success factors

Bulgaria has a lot to offer businesses, especially as its economy becomes more digitally advanced and the country seeks eurozone membership. But challenges remain. Here’s what to note when shaping a payments strategy for Bulgaria:

• Pace of technology adaptation: Bulgaria faces the challenge of slower adoption of emerging payment technologies. For instance, mobile payments have not gained as much traction as in some neighboring nations. This slower adoption rate poses a challenge for businesses operating in Bulgaria because they might need to maintain more complex systems and user experience (UX) designs to support a variety of payment methods.

• Regulatory adherence in data management: Businesses in Bulgaria encounter regulatory hurdles, particularly in data management and privacy. The implementation of the GDPR by the EU places significant compliance demands on businesses operating in Bulgaria. Failure to comply with the GDPR can result in substantial penalties, including fines of up to €20 million or 4% of a business’s global annual turnover. Businesses in Bulgaria must make substantial investments in data governance systems, especially in payment systems in which data sensitivity and the frequency of exchange are top concerns.

• Complexity in international transactions: As part of the EU, Bulgaria benefits from simplified transactions within the SEPA area but faces challenges such as exchange rate fluctuations and varying regulatory frameworks when conducting international transactions beyond SEPA’s jurisdiction. The World Bank reported that the value of Bulgaria’s exports totaled roughly $50 billion USD in 2022, emphasizing the growing importance of addressing these challenges.

Key takeaways

Businesses seeking to enter the Bulgarian market should embrace the spectrum of local preferences, use regulations to their advantage, and focus on the customer experience. Here’s an overview as you create and execute your strategy:

Embrace local preferences

• Embrace local payment methods: Bulgarian customers often prefer using local payment methods such as products offered by BORICA, the national card payment system. By integrating these local options into your payment process, you can cater to the preferences of Bulgarian customers and make them more likely to complete transactions.

• Offer multilingual payment interfaces: Bulgarian and Turkish are the main languages in Bulgaria, and businesses should offer payment interfaces in multiple languages to enhance the payment experience.

• Adapt to mobile payment preferences: Though mobile payments aren’t as widespread in Bulgaria as they are in other EU countries, they are increasing. Businesses should be prepared to accept them while maintaining flexibility in other payment method offerings.

Follow regulations

• Implement SEPA direct debits: SEPA defines many of Bulgaria’s payment rules, especially for recurring payments such as subscriptions. Working with SEPA-compliant payment gateways can simplify direct debits and recurring payments.

• Dealing with regulatory compliance: Businesses in Bulgaria must comply with all applicable regulations. This protects businesses from legal repercussions while building trust among customers, especially regarding data protection regulations such as the GDPR.

• Prioritize payment security: Data breaches and security concerns are increasingly prevalent in Bulgaria. Invest in strong security measures, such as two-factor authentication and encryption, to protect customer data.

Build an enjoyable customer experience

• Provide multicurrency options: Providing multicurrency options is a smart choice given Bulgaria’s diverse customer base and position as a tourist destination for other European countries. Letting customers pay in their preferred currency simplifies transactions and minimizes conversion-related confusion.

• Offer real-time customer support: Provide readily accessible customer support channels such as live chat during the payment process. Quick resolutions can prevent payment disruptions and contribute to a smoother experience.

• Simplify the checkout process: Reduce friction in the payment process by upgrading the checkout flow. Minimize the number of steps a customer must take to finalize their purchase. A simple and intuitive process can reduce cart abandonment rates.