National Payments Council Convenes: Reforms Discussed for Modernizing the National Payment System and SEPA Integration, with Broad Positive Impact in economy

The Central Bank of the Republic of Kosovo (CBK) reaffirmed its full commitment to modernizing the national payment system and integrating it into the European financial infrastructure during the first meeting of the National Payments Council for 2025, chaired by Deputy Governor for Banking Operations, Mr. Dardan Fusha.

At the opening of the meeting, welcome remarks were delivered by the Governor of the Central Bank of Kosovo, Mr. Ahmet Ismaili; the Acting Minister of Finance, Labor and Transfers, Mr. Hekuran Murati; the representative of the World Bank, Mr. Matija Laco; the representative of the International Finance Corporation (IFC), Mr. Visar Perani; and the Executive Director of the Bankers’ Association, Mr. Petrit Balija, who all emphasized the strategic importance of these reforms for economic development and the benefits for citizens. The institutional support of the CBK was also reflected through the participation of the Chairman of the Board, Mr. Bashkim Nurboja, and Deputy Governor Mr. Milot Cakaj.

In his opening address, Governor Ismaili highlighted the strategic steps taken by CBK toward modernizing the payment system and full integration into the European market, in line with its institutional strategic plan. He emphasized that this process is not merely a technical reform, but a deep structural transformation aligned with the vision of European integration and enhanced competitiveness. In this context, he presented the adoption of the legal and regulatory framework, including three key laws (the Law on Banks, the Law on Payment Services, and the Law on Prevention of Money Laundering), as well as more than 20 regulations ensuring alignment with EU standards.

It was noted that the pre-application process for SEPA membership was completed in December 2024, while CBK continues its intensive engagement at both regional and European levels to ensure the financial sector is adequately prepared to access SEPA schemes. Despite the progress recognized by international partners, the final assessment by the European Commission has been delayed due to the constitutional review of the adopted laws. CBK expects a positive conclusion to this process in the near future.

According to current estimates, SEPA membership is expected to generate direct benefits of over €55 million annually for Kosovo’s citizens and businesses by lowering transfer costs, increasing efficiency, and improving market conditions.

In line with this vision, in January 2025, CBK signed a Letter of Intent with the Bank of Italy and three regional central banks to develop a fast payment system – the TIPS Clone. This marks a historic step that places Kosovo within the most advanced payment infrastructure managed by the Bank of Italy on behalf of the Eurosystem.

The meeting also addressed recent technological developments, including the use of QR codes, the “Request to Pay” functionality, use of alternative identifiers, and selection of technology networks, all expected to drive digitalization and reduce reliance on cash.

Regarding non-bank financial institutions, CBK has taken concrete steps, including the implementation of the IBAN standard, approval of QR code guidelines, integration of the Account and Credit Registry with the e-Kosova platform, and interconnection of the Kosovo Pension Savings Trust system with the Account Registry.

The reforms undertaken aim to establish a secure and modern infrastructure that also enables Kosovo’s integration into international platforms such as Apple Pay and PayPal, which require high technological and regulatory standards.

However, the process faces significant challenges, such as the technological adaptation of the financial sector, ensuring cybersecurity, compliance with strong authentication requirements, and increasing public awareness, especially in rural areas and among vulnerable groups. Effective public communication and expectation management are also crucial.

CBK emphasized the need for the financial sector to invest in technology and human capital, to closely cooperate with the regulator throughout the implementation phases, and to contribute to the financial education of citizens.

CBK emphasized the need for the financial sector to invest in technology and human capital, to cooperate closely with the regulator throughout the implementation phases, and to contribute to the financial education of citizens. Additionally, the need to strengthen inter-institutional cooperation with the public sector was highlighted, in order to enable the acceptance of electronic payments within agencies and physical service offices, as well as to support the production of statistics and the validation of customer data.

All these efforts aim to build a safer, more efficient, and more transparent payment system, supported by the National Payments Council, an inter-institutional advisory body that includes representatives from the financial sector, public institutions, and international partners.

On this occasion, CBK expresses its gratitude to all domestic and international partners for their support, particularly the Ministry of Finance, Labor and Transfers, the World Bank, and the International Finance Corporation for their invaluable assistance in the design and implementation of these reforms.