Albania is expected to implement payment transactions within the Single Euro Payments Area (SEPA) system this year, a step that will significantly reduce the costs of international transfers for Albanian citizens, both inside and outside the country.

According to the study by the Bank of Albania, the economic benefits of making payments with higher efficiency in terms of costs, time, and security are large and can reach up to Euro 20 million in the first year, to increase progressively following.

More specifically, based on the experience of the AIPS Euro system, through which the Bank of Albania, since the beginning of operation in January 2022, has saved the Albanian market about Euro 50 million, it is estimated that the impact of SEPA membership will be higher.

SEPA is an initiative of the European Union, which enables individuals and businesses to make electronic payments in Euro, in a safe, easy, and efficient way, following the rules of the same between member countries. However, today the SEPA geographical area also extends outside the EU countries.

At the meeting of November 21, 2024, the Board of the European Payments Council made the decision to approve the request of Albania and Montenegro for their membership in the SEPA geographical area. Thus, Albania became part of the first group of Western Balkan countries to join SEPA, as a prerequisite for the country’s membership in the European Union.

This decision marks a very important step, not only for the integration of Albania’s financial market with the European one but also for the economy, without yet being a member of the European Union.

At the national level, this membership promotes financial inclusion, reduces the use of physical cash, expands payment products and services, and promotes the development of financial technology. While at the cross-border level, it promotes commercial interaction and the movement of monetary flows with the European Union. The EU is the main trading partner of Albania, where about 60% of trade is carried out with its member countries, and the creation of financial facilities is significant for the expansion of trade exchanges.

Also, participation in SEPA offers Albanian businesses access to the European market of 450 million inhabitants, offering them opportunities to expand their activity, increase competition, and benefit from innovations.