CBK approves the Instruction on QR Code Standard to be used for payments in Kosovo

The Executive Board of the Central Bank has approved the Instruction on QR Code Standard, which will be used for payment transactions in the Republic of Kosovo.

The purpose of this instruction is to define the rules and technical requirements for the development and operation of the QR Code structure in the Republic of Kosovo, which will be used for payments in retail sales and for invoice payments. It aims to promote the wider use of digital devices and smartphones for making payments, while ensuring stable and secure interaction between service providers and consumers.

The adoption of this standard is part of the activities and actions undertaken in the field of payments, within the CBK’s strategy to build a modern and inclusive market for small value payments. This also includes the development of the legal and regulatory framework as well as the modernization of the infrastructure in order to ensure a safe, efficient and competitive system for payments in the country.

CBK has adopted the standard defined by the European Payments Council (EPC), which includes the QR Code standard used in the EU for payment transfers initiated by smartphones and for fast payment systems. This standard is also expected to be used by the countries of the region within the EU project for the Modernization of the Payment Systems of the Western Balkan Countries.

Using this standard will bring some advantages and benefits, such as:

• For citizens: fast and convenient method of making payments by scanning QR codes with digital devices. This reduces errors in payment details and speeds up the process, while also helping to better manage personal finances.
• For merchants and service providers: it enables them to offer to their customers an easy way to make payments through standard QR code, regardless of the payment service provider. This enables automatic and secure payment processing, while also simplifying processes for account reconciliation and compliance issues.
• For payment service providers: banks and other payment providers can easily integrate this standard into their applications, thus reducing technical barriers. Standardization also facilitates the identification of suspicious transactions.
• For public institutions: digitization of services and clarity regarding accepted payments will be other important benefits. Payments can be categorized by their purpose (taxes, fees, fines, etc.), thus simplifying the procedures for making remote payments through platforms such as e-Kosova or through mobile phones at points of sale.

With this standard, the Central Bank intends to make sure that QR codes will be used efficiently in the Republic of Kosovo for payment purposes in different systems and platforms, thus reducing their fragmentation. Moreover, the adoption of the QR code standard of the European Payments Council (EPC) aims to facilitate the processing of payments not only within the country, but also at the regional level and in other countries within the SEPA zone, in accordance with the strategic objectives of CBK. The implementation of this standard now depends on the technical developments and the necessary infrastructure that the licensed payment service providers in Kosovo will put into operation.

You may find the Instruction at the following link

https://bqk-kos.org/wp-content/uploads/2024/10/Udhezim-per-standardin-e-QR-kodit_opt-1.pdf