This paper examines the payment service regulation in Republic of Serbia. The aim of the paper is to underline the importance of the implemented legislative reform and the innovations which allow the domestic business entities and payment service users to keep abreast with current economic developments under more favourable conditions and higher protection. The author defines the relevant notions and presents the innovations related to the payment service legislation in order to prove the fact that it is fully harmonized with the EU directives. In the paper there are also given certain recommendations which might help improve the implementation of the new regulations, primarily in the field of payment service customers protection. The transparency principle, which is the fundamental principle of these amendments, makes it possible to further develop this law in practice (e.g. the transparency of fees customers are charged for payment accounts). We expect more dynamic development of payment service in the future, which includes informing customers in a better manner and protecting them more efficiently.