Slovenia, a country at the crossroads of central Europe in the northern Balkans, has a population of about 2.1 million people. As a member of the European Union (EU) and the eurozone, its payment system is strongly shaped by European regulations and norms, although its financial sector bears its own unique characteristics.

Slovenia’s payment space offers opportunities for businesses that can adapt to its diverse payment preferences, strong security standards, and regulatory policies. In this article, we’ll provide an overview of payments in Slovenia, including customer payment behavior and technological advancements. We’ll also discuss how to successfully enter the market, including:

• Accounting for local payment preferences
  
• Prioritizing EU standards
  
• Optimizing the checkout experience
  

The state of the market

Slovenia enjoys a strong banking sector driven by several key players. Among these institutions is Nova Ljubljanska Banka (NLB), the country’s largest and oldest bank. Abanka is another major player that focuses on retail and corporate banking and provides a range of financial products and services. UniCredit Bank Slovenia, part of the international UniCredit Group, also operates as an important part of Slovenia’s banking sector.

Effective regulation and oversight are fundamental to a well-functioning payment space. In Slovenia, these responsibilities are shared between entities. The Bank of Slovenia, the nation’s central bank, plays an important role in shaping monetary policy, maintaining financial stability, and overseeing payments systems. The Securities Market Agency (ATVP) is responsible for regulating and supervising the securities market, which includes activities related to investment funds and securities trading. The Insurance Supervision Agency (AZN) oversees the insurance sector to safeguard the interests of policyholders and maintain the industry’s compliance with regulatory standards.

Payment methods

Slovenia’s payment landscape includes a range of different methods. However, while it is adapting to more technologically advanced methods, cash remains very important. Let’s take a closer look.

Current usage

In 2024, credit and debit cards accounted for 34% of transaction value and 29% of point-of-sale (POS) transactions in Slovenia, according to a European Central Bank (ECB) report, suggesting cards are used for larger purchases and cash for smaller, everyday transactions. Like many other European countries, Slovenians have historically preferred to pay with debit over credit cards.

ECB data also shows the share of contactless transactions in all POS card payments in the country jumped from 72% in 2019 to 83% in 2022. During that period, Slovenia raised the spending cap for contactless payments from €15 to €50 to encourage these transactions.

Although customer behavior in Slovenia is adapting to technological advancements, the ECB found 64% of POS transactions in 2024 were conducted in cash. However, cash payments exceeding €5,000 for a single purchase from a professional seller are prohibited. These measures, designed to promote a safe and accountable financial environment, also encourage the adoption of digital alternatives.

Localized mobile payment solutions such as Valu have also gained prominence in Slovenia. Some options allow for peer-to-peer (P2P) payments, bill splitting, and even investing.

Popular B2C payment methods in Slovenia

• Cash
  
• Debit and credit cards
  
• Local third-party platforms (e.g., Valu, Revolut)
  

Popular B2B payment methods in Slovenia

• Single Euro Payments Area (SEPA) direct debits
  
• Debit and credit cards
  
• Cash for transactions under €5,000
  

Emerging trends

Like its European neighbors, Slovenia uses mobile payments, but the rate of adoption has been slow. Mobile payments—facilitated through mobile wallets and dedicated apps—accounted for just 3% of POS transactions in 2024, according to the ECB.

Ease and friction of entry

As part of the EU and the eurozone, Slovenia is generally considered a safe, supportive place to conduct business. However, there are some specific factors that companies operating in the country must keep in mind.

Taxes

Value-added tax (VAT) is a major aspect of payments in Slovenia. It is levied at a standard rate of 22% for most goods and services. Both customers and businesses encounter VAT when making purchases. Businesses have the additional responsibility of collecting and remitting VAT to the government. Proper VAT compliance is important for both parties; failing to comply can result in fines, audits, and legal repercussions. Learning to address these taxes, costs, and fees is important for making informed financial decisions in the Slovenian payment space.

Chargebacks and disputes

Slovenia prioritizes consumer protection in its payment dispute mechanisms. European regulations, including the revised Payment Services Directive (PSD2), play a substantial part in this effort. PSD2 mandates Strong Customer Authentication (SCA), which influences how chargebacks and disputes are resolved. Other relevant regulations stem from SEPA, which has specific rules governing chargebacks related to direct debits. SEPA regulations stipulate that customers have the right to request a refund for any direct debit transactions within eight weeks of the transaction.

The European Consumer Centre Slovenia tracks annual requests and customer complaints, which can give businesses entering the market a good idea of the sorts of disputes and challenges they might face.

International payments

As a smaller country in the EU, international payments are an important part of Slovenia’s economy. Here’s what you need to know.

• Currency conversion
  Currency conversion in Slovenia operates under EU regulations, specifically PSD2, which mandates full transparency in conversion rates and fees—including service fees and exchange rate markups. Besides local banks and ATMs, third-party platforms also conduct currency exchange, either at the point of transaction or as part of a bank transfer process. Solutions include Stripe, Valu, Revolut, and Wise.

• Relationship with the eurozone
  Slovenia is part of the eurozone, and, as such, it is governed by the policies of the ECB. It is also part of SEPA, which standardizes euro-denominated bank transfers—this includes transfers with countries that have close trade ties but do not use the euro. Adhering to SEPA rules connects Slovenia with other European markets, making cross-border trade and financial interactions easier.

• International trade
  Slovenia is an active participant in regional trade agreements, including the Central European Free Trade Agreement (CEFTA). CEFTA builds economic cooperation among member countries, further expanding Slovenia’s trade network in the region.

Security and privacy

Slovenia’s membership in the EU and the eurozone means it must adhere to the bloc’s stringent rules around security and privacy protections. While these can set a higher bar for businesses, they can also build trust with customers. Here’s what you might encounter.

• Data protection laws
  Slovenia adheres to the General Data Protection Regulation (GDPR). The GDPR sets the gold standard for customer data protection by requiring explicit consent for data collection and granting customers the right to request the deletion of their personal information.

• PSD2 compliance
  PSD2 is another important regulation governing businesses in Slovenia. Its SCA mandate often involves implementing two-factor authentication (2FA) to increase transaction security.

• Bank of Slovenia’s oversight
  The country’s central bank plays a major role in ensuring the stability and security of payment systems. It oversees compliance with EU and national regulations, and it monitors financial institutions.

• Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws
  Slovenia follows EU directives related to AML and CTF. Financial institutions are obligated to establish thorough monitoring and reporting systems for suspicious financial activities, as noncompliance can result in substantial penalties.

• Role of the Financial Intelligence Unit (FIU)
  The FIU in Slovenia is responsible for monitoring and investigating potential financial crimes, including money laundering and terrorist financing. The FIU provides another layer of security for the nation’s financial environment.

Key success factors

Slovenia has a lot to offer businesses, but like any complex system, it comes with challenges. Here’s what to keep in mind when shaping a payments strategy in the country.

• Strategize for slower adoption rates
  One notable challenge in Slovenia’s payment environment is the relatively slow adoption of emerging payment technologies—particularly mobile payments. By 2030, the number of mobile payment users is projected to be 839,290. With a population of roughly 2.1 million, that is about 40% of the country. This situation presents a challenge for businesses, as they might need to cater to a variety of payment preferences, which can be complicated when designing the user experience.

• Be cognizant of regulatory hurdles in data management
  The implementation of the GDPR by the EU has introduced stringent compliance requirements for businesses operating in Slovenia. Noncompliance with the GDPR can lead to substantial fines, with penalties of up to €20 million or 4% of a company’s global annual turnover. Businesses—especially those in the payments sector—have had to make substantial investments in data governance systems to comply with this regulation.

• Prepare for complexity in international transactions
  While Slovenia benefits from simplified internal European payments through SEPA, challenges related to international transactions persist. These include dealing with exchange rate fluctuations, divergent regulations outside SEPA, and the need for comprehensive cross-border payment solutions. In 2022, the value of Slovenia’s exports totalled over $55 billion USD, showing the scale of cross-border payments taking place each year.

Key takeaways

Businesses seeking to enter the Slovenian market need to prepare for a spectrum of local preferences, prioritize EU regulation compliance, and build a strong customer experience. Here’s an overview to keep in mind when you create and execute your business plan.

Account for local preferences

• Offer local language options
  The official language of Slovenia is Slovenian, and it is the native language of 84% of adults. The overwhelming majority of adults also speak at least one foreign language, the most popular of which is English, followed by German and Croatian. Businesses operating in Slovenia therefore need to offer text and experiences in Slovenian, as well as in other commonly spoken languages.

• Remain flexible on mobile payments
  Mobile payments remain a relatively uncommon payment method when compared to their use in other European countries, but that is changing. Businesses need to be prepared to build in mobile payment capabilities in the near future—if they don’t already have them.

• Recognize the continued preference for cash
  While digital transactions are gaining ground, cash remains the payment method of choice for many Slovenians. Businesses—particularly those with brick-and-mortar establishments—can improve the customer experience by facilitating quick cash transactions and maintaining an efficient cash management system.

Prioritize aligning with EU standards

• Comply with all EU regulations
  Businesses in Slovenia must comply with all applicable regulations, not only for legal reasons but also to build trust among customers. This is especially true when it comes to data protection rules, such as those in the GDPR.

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

• Prioritize payment security
  Slovenians put an emphasis on payment and data security. Invest in strong security measures, such as 2FA and encryption, to protect customer data. Demonstrating a commitment to security will instill confidence in customers and other businesses that could be interested in working with you.

Build an optimized experience

• Streamline checkout processes
  Internet use is high in Slovenia, with 90% of households having gained internet access by the end of 2022. This presents a great opportunity for online retailers. However, lengthy checkout processes can deter customers from completing transactions. Businesses need to focus on optimizing their checkout flows in order to reduce cart abandonment.

• Provide real-time customer support
  Accessible customer support can resolve payment issues promptly, leading to a better customer experience. Live chat or immediate customer support options can also mitigate payment issues, increasing overall satisfaction.

• Simplify refund procedures
  Businesses need to establish transparent and straightforward refund processes to effectively address payment disputes. Transparent refund policies and quick response times in addressing refund requests contribute to customer loyalty.