From now on, transferring money from Albania to SEPA member countries costs up to five times less than before. A payment from Tirana to Rome costs no more than a payment within Tirana itself.
Historic moment for the Albanian financial market: the launch of the first euro transaction processed under the Single Euro Payments Area, known as SEPA. „This is not merely a technical development in the payment system, but a cornerstone in Albania’s path toward integration into the European financial infrastructure.” – said Gent Sejko, Governor of the Bank of Albania, at the Launching Ceremony of the First SEPA Transaction.
He continued: „Today, 11 commercial banks operating in Albania are ready to provide SEPA services for citizens and businesses. Now begins the second phase: the full utilization of this standard by banks and businesses, the education of users, and the enhancement of payment digitalization. The Bank of Albania calls upon all commercial banks and financial institutions to actively promote SEPA services, to inform their clients of the tangible benefits, and to invest in the continued enhancement of the digital platforms. Only through the joint cooperation and unwavering commitment of all stakeholders can Albania fully realize the potential of this historic step toward integration.”
Lower costs, faster transactions
SEPA brings tangible benefits for citizens and businesses. For example, transferring money from Albania to SEPA member countries costs up to five times less than before. A payment from Tirana to Rome costs no more than a payment within Tirana itself. At the same time, fees on incoming payments will reduce considerably. Also, electronic payments are quicker, more secure, and more convenient.
Integration into SEPA, combined with the expansion of digital payments, is expected to generate savings of around EUR 20 million in the first year only, with progressive growth in the years to come. By way of comparison, AIPS EURO system of the Bank of Albania – operational since January 2022 – has saved the domestic market around EUR 140 million.
This shows that SEPA’s impact will be even broader, endorsing lower costs and enhanced operational efficiency for both citizens and businesses.On a broader scale, integration in SEPA is translated into social and regional benefits. This includes reducing informality, lowering the costs of remittances, fostering financial inclusion and converging with the European market.
According to estimates by the World Bank, a 10% increase in digital payments results in a 2% reduction in informality.
The Albanian emigrants and their families may save up to ten of millions of euro annually by sending remittances through SEPA-compliant baking channels.
At the regional level, until now, cross-border payments between businesses in the Western Balkans have cost up to ten times more than within the EU. Under SEPA, this cost is reduced to levels comparable to those in the European Union market.
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