Albania Joins European Payment System SEPA: Significant Savings and Economic Boost Expected
Albania is now part of the European euro payment system, SEPA (Single Euro Payments Area), marking a significant milestone for businesses, citizens, and the national economy.
With SEPA, individuals and businesses can perform payments and money transfers at much lower costs. According to the Governor of the Bank of Albania, Gent Sejko, this integration represents a historic moment for Albania’s economy.
“Joining SEPA will drastically reduce the costs of transfers for Albanian citizens and businesses, making them up to five times cheaper than current rates. Transfers will also be processed on the same day, matching the efficiency of EU member states. Additionally, commission fees for payments will be minimal,” Sejko explained.
Albania is the first country in the region to become part of SEPA. In the system’s first year of implementation, Albanian citizens are expected to save millions of euros. Governor Sejko highlighted that SEPA will also encourage greater economic formalization.
Lower transaction costs and faster processing times will motivate citizens to use banking channels for payments, reducing reliance on cash transactions.
“In the first year alone, citizens are projected to save €20 million, depending on how quickly all banks join the SEPA system. Over time, these savings will grow progressively, benefiting both citizens and businesses,” noted Sejko. He added that the system will also support law enforcement efforts to combat tax evasion and informality while increasing the volume of bank transactions.
A similar internal system, AIPS (Albanian Interbank Payment System) for euro transactions, was launched by the Bank of Albania in 2022. Over two years, it saved Albanian citizens €97 million. However, with SEPA, the savings are expected to be significantly higher, given that the majority of Albanian businesses operate in euros.
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