TIRANA, Jan 2 /ATA/ Albania is set to carry out transactions within the SEPA system this year, a step that will significantly reduce the costs of international transfers for Albanian citizens, both within the country and abroad.
According to estimates conducted by the Bank of Albania, the economic benefits of executing payments more efficiently in terms of cost, time, and security are substantial, potentially reaching up to 20 million euros in the first year, with a progressive increase thereafter.
Specifically, drawing on the experience of the AIPS Euro system, through which the Bank of Albania has saved the Albanian market approximately 50 million euros since its launch in January 2022, it is anticipated that the impact of joining SEPA will be even more significant.
SEPA (Single Euro Payments Area) is an initiative of the European Union that enables individuals and businesses to make electronic payments in euros in a secure, simple, and efficient way, following the same rules across member countries. However, today, the SEPA geographic area extends beyond EU member states.
In the meeting held on November 21, 2024, the Board of the European Payments Council decided to approve the request of Albania and Montenegro for their membership in the SEPA geographic area.
Consequently, Albania became one of the first Western Balkan countries to join SEPA, as a pre-requisite for our European Union membership.
This decision marks a significant milestone, not only for the integration of our financial market with the European market but also for our economy, despite the fact that we are not yet 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 stimulates the development of financial technology.
partner, with about 60% of trade conducted with its member states, and financial facilitation is crucial for expanding trade exchanges.
In addition, joining SEPA grants Albanian businesses access to the European market of 450 million people, providing opportunities to expand their operations, boost competition, and leverage innovations. J.p/sm/
