When regulations shape markets: focus on Spain

Financial markets are evolving, and so are the regulations that govern them. These regulatory milestones shape markets, influence their dynamics, and redefine economic models.

In Spain, instant financing is facing tighter regulations to strengthen consumer protection, while instant payments are rapidly expanding thanks to user adoption and Europe's push for harmonization.

Regulation plays a crucial role in the development of innovative financial solutions. It establishes a framework of trust, security, and compliance that guides industry players toward responsible practices, while also fostering the ingenuity needed to meet constantly evolving demands.

Spain is emphasizing a regulatory sandbox model, which enables new business models to be tested in a controlled environment. This approach encourages experimentation without compromising the integrity of the financial system. In some cases, sandbox outcomes have even prompted adjustments to existing regulations, highlighting a regulatory system that is not only robust but also adaptable to market developments.

The regulatory sandbox: a launch pad for innovation

Inspired by the model established by the UK's Financial Conduct Authority (FCA), the regulatory sandbox was created to foster the development of technology-driven projects in the financial services sector. Implemented in Spain in January 2021, it offers a secure framework where innovations can be tested under real-world conditions. 

This allows project leaders to experiment with new approaches, refine their business models, and demonstrate their added value.

Structure and operation

The process is based on a call for applications, organized twice a year (usually in March and September). 

The process follows a five-step sequence: 

1. Submission of applications: project leaders have 30 days to submit their applications.

2. Preliminary assessment: The supervisory authorities examine the admissibility of the application. 

3. Negotiation of the test protocol: "promoters" and regulators draw up a protocol specifying the conditions of the experiment. 

4. Supervised testing phase: projects are tested in real and secure conditions, with transparency and consent requirements for participants. 

5. End of the sandbox: at the end of the testing phase, an evaluation report is produced. These results can be used to refine the strategy. 

What are the conditions for access? 

Projects are selected based on a list of criteria defined by Law 7/2020. To be eligible, a project must: 

• Present a technological innovation for the financial system, whether in the form of new uses, alternative models, or disruptive tools. 
• Be sufficiently advanced in its development to be tested (Minimum Viable Product).
• Provide clear added value, either by facilitating regulatory compliance or by improving the user experience, institutional efficiency, or supervisory mechanisms.

Concrete results – The Pensumo example 

Since its launch, the regulatory sandbox has enabled projects to develop in a supervised environment. 

One of the most critical projects is Pensumo. This service allows users to generate micro savings for the future by allocating a percentage of each purchase to a retirement plan.

Launched in October 2024, the app is free and available to people over the age of 18. It already had 4,000 active users in February 2025. Not only has it proven its viability, but it has also led to broader regulatory thinking. The experience has helped to evolve the legislative framework to facilitate its development. 

Pensumo now wants to expand its model to Europe and Latin America and continues to enhance its catalog of features. 

Consumer credit: a new framework to consider

For several years, Spain has operated in a relatively flexible legal framework that has allowed certain players (fintechs and specialized platforms) to develop rapidly by offering highly flexible financing services. 

But this situation is coming to an end. By November 20, 2025, Spain will have to transpose Directive 2023/2225 into its law, which recasts the legal framework applicable to consumer credit in Europe. 

The directive aims to harmonize and tighten the framework applicable to consumer credit to strengthen consumer protection against the risks of over-indebtedness and ensure greater transparency. 

It introduces several significant changes, including: 

• It extends its scope to products that have been poorly regulated until now: all credit agreements up to €100,000, including amounts below €200.

• It requires a more rigorous assessment of the borrower's creditworthiness, in the interest of the consumer.

• It imposes stricter rules on advertising and commercial communications to prevent them from being misleading and creating false expectations among consumers.

• Pre-contractual information must also be provided in a clear and comprehensible manner. 

• It clarifies the provisions relating to the withdrawal period.

For many players, this reform represents a significant shift. As a result, part of the market is facing operational risks. To continue operating legally, some are seeking to obtain a license from the Bank of Spain. 

The European regulation on instant payments

Adopted in March 2024, the European Regulation on Instant Payments marks a significant milestone: since January 9, 2025, all banks and payment service providers (PSPs) operating in the eurozone are required to offer transfers within 10 seconds, both domestically and across member states.

In Spain, this development aligns with an already favorable environment. The widely adopted Bizum solution, with over 30 million users, has familiarized the public with real-time payments. Integrated into banking apps, Bizum enables users to send and receive money instantly using just a phone number.

As a result, the regulation is not expected to cause disruption. Instead, it will reinforce an already well-established trend while laying the groundwork for broader adoption across the European Union.

The Spanish case highlights the role of regulation in balancing innovation and security. It fosters experimentation, enforces new requirements to protect users, and supports existing market dynamics.

These three examples share a common goal: to regulate innovation while creating the conditions necessary for its sustainable growth. For industry players, the challenge lies in anticipating these changes and adapting effectively to remain competitive and continue meeting user expectations.

At Skaleet, we support financial institutions with an agile, modular, and forward-looking solution. Want to learn more? Contact us.