diff --git a/packages/lib/src/components/Dropin/Dropin.test.ts b/packages/lib/src/components/Dropin/Dropin.test.ts
index 48bde47149..c80058437e 100644
--- a/packages/lib/src/components/Dropin/Dropin.test.ts
+++ b/packages/lib/src/components/Dropin/Dropin.test.ts
@@ -38,12 +38,14 @@ describe('Dropin', () => {
         });
     });
 
+    // TODO - this test doesn't do anything
     describe('closeActivePaymentMethod', () => {
         test('should close active payment method', async () => {
             const dropin = new Dropin(checkout);
             const component = await mount(dropin.render());
             await component.update();
 
+            // re. TODO: dropin.dropinRef.state.activePaymentMethod = null, which is defined, so this assertion passes
             expect(dropin.dropinRef.state.activePaymentMethod).toBeDefined();
             dropin.closeActivePaymentMethod();
             expect(dropin.dropinRef.state.activePaymentMethod).toBeNull();
@@ -155,4 +157,31 @@ describe('Dropin', () => {
             expect(await screen.findByText(/An unknown error occurred/i)).toBeTruthy();
         });
     });
+
+    describe('Complying with local regulations', () => {
+        test('Default values for openFirstPaymentMethod & openFirstStoredPaymentMethod are true', () => {
+            const dropin = new Dropin(checkout);
+
+            expect(dropin.props.openFirstPaymentMethod).toBe(true);
+            expect(dropin.props.openFirstStoredPaymentMethod).toBe(true);
+        });
+
+        test('when countryCode is Finland openFirstPaymentMethod & openFirstStoredPaymentMethod should be false by default', () => {
+            checkout.options.countryCode = 'FI';
+
+            const dropin = new Dropin(checkout);
+
+            expect(dropin.props.openFirstPaymentMethod).toBe(false);
+            expect(dropin.props.openFirstStoredPaymentMethod).toBe(false);
+        });
+
+        test('if openFirstPaymentMethod & openFirstStoredPaymentMethod are set by merchant then these values should be used', () => {
+            checkout.options.countryCode = 'FI';
+
+            const dropin = new Dropin(checkout, { openFirstPaymentMethod: true, openFirstStoredPaymentMethod: true });
+
+            expect(dropin.props.openFirstPaymentMethod).toBe(true);
+            expect(dropin.props.openFirstStoredPaymentMethod).toBe(true);
+        });
+    });
 });
diff --git a/packages/lib/src/components/Dropin/Dropin.tsx b/packages/lib/src/components/Dropin/Dropin.tsx
index 3654962d8f..a05b0a833f 100644
--- a/packages/lib/src/components/Dropin/Dropin.tsx
+++ b/packages/lib/src/components/Dropin/Dropin.tsx
@@ -12,10 +12,11 @@ import { hasOwnProperty } from '../../utils/hasOwnProperty';
 import SRPanelProvider from '../../core/Errors/SRPanelProvider';
 import splitPaymentMethods from './elements/splitPaymentMethods';
 import type { ICore } from '../../core/types';
+import type { IDropin } from './types';
 
 const SUPPORTED_INSTANT_PAYMENTS = ['paywithgoogle', 'googlepay', 'applepay'];
 
-class DropinElement extends UIElement<DropinConfiguration> {
+class DropinElement extends UIElement<DropinConfiguration> implements IDropin {
     protected static defaultProps = defaultProps;
 
     public dropinRef = null;
diff --git a/packages/lib/src/components/Dropin/types.ts b/packages/lib/src/components/Dropin/types.ts
index aa4700459f..4f2a0d9473 100644
--- a/packages/lib/src/components/Dropin/types.ts
+++ b/packages/lib/src/components/Dropin/types.ts
@@ -124,3 +124,8 @@ export interface DropinComponentState {
     isDisabling: boolean;
     orderStatus: OrderStatus;
 }
+
+export interface IDropin {
+    activePaymentMethod: () => null;
+    closeActivePaymentMethod: () => void;
+}
diff --git a/packages/lib/src/components/internal/UIElement/UIElement.tsx b/packages/lib/src/components/internal/UIElement/UIElement.tsx
index 5def86c1c6..09fb6eb803 100644
--- a/packages/lib/src/components/internal/UIElement/UIElement.tsx
+++ b/packages/lib/src/components/internal/UIElement/UIElement.tsx
@@ -1,7 +1,7 @@
 import { h } from 'preact';
 import BaseElement from '../BaseElement/BaseElement';
 import PayButton from '../PayButton';
-import { cleanupFinalResult, sanitizeResponse, verifyPaymentDidNotFail } from './utils';
+import { assertIsDropin, cleanupFinalResult, getRegulatoryDefaults, sanitizeResponse, verifyPaymentDidNotFail } from './utils';
 import AdyenCheckoutError from '../../../core/Errors/AdyenCheckoutError';
 import { hasOwnProperty } from '../../../utils/hasOwnProperty';
 import { Resources } from '../../../core/Context/Resources';
@@ -22,6 +22,7 @@ import type {
 } from '../../../types/global-types';
 import { ANALYTICS_SUBMIT_STR } from '../../../core/Analytics/constants';
 import { AnalyticsInitialEvent, SendAnalyticsObject } from '../../../core/Analytics/types';
+import { IDropin } from '../../Dropin/types';
 
 import './UIElement.scss';
 
@@ -83,7 +84,13 @@ export abstract class UIElement<P extends UIElementProps = UIElementProps> exten
             ...componentProps
         };
 
-        this.props = this.formatProps({ ...this.constructor['defaultProps'], ...finalProps });
+        const isDropin = assertIsDropin(this as unknown as IDropin);
+
+        this.props = this.formatProps({
+            ...this.constructor['defaultProps'], // component defaults
+            ...getRegulatoryDefaults(this.core.options.countryCode, isDropin), // regulatory defaults
+            ...finalProps // the rest (inc. merchant defined config)
+        });
     }
 
     protected storeElementRefOnCore(props?: P) {
diff --git a/packages/lib/src/components/internal/UIElement/utils.ts b/packages/lib/src/components/internal/UIElement/utils.ts
index a22461a00c..57ac261567 100644
--- a/packages/lib/src/components/internal/UIElement/utils.ts
+++ b/packages/lib/src/components/internal/UIElement/utils.ts
@@ -1,5 +1,6 @@
 import { UIElementStatus } from './types';
 import { RawPaymentResponse, PaymentResponseData } from '../../../types/global-types';
+import { IDropin } from '../../Dropin/types';
 
 const ALLOWED_PROPERTIES = ['action', 'resultCode', 'sessionData', 'order', 'sessionResult', 'donationToken', 'error'];
 
@@ -57,3 +58,25 @@ export function verifyPaymentDidNotFail(response: PaymentResponseData): Promise<
 
     return Promise.resolve(response);
 }
+
+export function assertIsDropin(dropin: IDropin) {
+    if (!dropin) return false;
+
+    const isDropin = typeof dropin.activePaymentMethod === 'object' && typeof dropin.closeActivePaymentMethod === 'function';
+    return isDropin;
+}
+
+export function getRegulatoryDefaults(countryCode: string, isDropin: boolean): Record<string, any> {
+    switch (countryCode) {
+        // Finnish regulations state that no payment method can be open by default
+        case 'FI':
+            return isDropin
+                ? {
+                      openFirstPaymentMethod: false,
+                      openFirstStoredPaymentMethod: false
+                  }
+                : {};
+        default:
+            return {};
+    }
+}