Deputy Governor Fusha: The CBK is advancing the legal and regulatory framework for digital payments, as their use is rapidly growing

The Central Bank of the Republic of Kosova (CBK) is advancing the legal and regulatory framework for digital payments, said Deputy Governor for Banking Operations, Mr. Dardan Fusha, at the forum “Digital payments, consumer behaviour and preferences in Kosova”, co-organized by the Kosovo Banking Association (KBA) and VISA.

Deputy Governor Fusha, in his welcoming speech, highlighted that the banking sector in Kosova has made a significant progress in the field of digital payments. However, there are still many opportunities for advancement in this direction. Modernization of the financial market infrastructure and digitization of services are one of the main pillars of the new CBK’s Strategy.

“The number of transactions by bank cards, ATM and POS terminals, use of digital channels, POS transactions, e-banking and other services have increased significantly, as a result of opportunities and progress in this sector, whereby non-cash payments reached to 35 per capita and for the first time in 2022, POS payment transactions surpassed ATM transactions”, said Deputy Governor Fusha, providing some statistics on the trends and progress of these developments.

“The market has opened up to new stakeholders, including those of FinTech, in the field of payments and emission of electronic money, bringing benefits and more service choices to consumers. These developments have also influenced the reduction of the cost of remittances, bringing Kosova below the regional average in terms of cost of transfers from the EU”, added Deputy Governor Fusha.

The Deputy Governor for Banking Operations highlighted that the CBK is advancing the legal framework of payment services and they are working on the development of market infrastructure to increase interaction, security and efficiency of payments.

“We are advancing our legal and regulatory framework to support these developments. The new Draft Law on Payment Services, aligned with EU directives is a decisive step, creating a more competitive and inclusive environment. This is in line with our strategic goal to join the Single Euro Payments Area (SEPA), which will enable us to access European payment systems, including TIPS. Access to EU systems would facilitate trade and would contribute to the creation of an efficient, secure and more integrated payment system, which would better serve our needs for economic growth”, said Deputy Governor Fusha.

Deputy Governor Fusha also pointed out that new technological developments and digitization bring additional risks, which requires strengthening of supervisory capacities.

In the panel of this forum, Deputy Governor Fusha disclosed to the participants some of the recent actions undertaken by the CBK, which are in line with the recommendations of the National Council of Payments issued from the January 2024 meeting, with the wide participation of all parties, including private and public sector, and International Card Schemes.

“The rapid pace of technological change also brings new risks to payment systems. Therefore, we are constantly working on strengthening the supervision of the payment system and consumer protection. Financial education of citizens for safe use and providing knowledge about possible risks empowers individuals to make right decisions, increase their confidence in the use of digital services and help them recognize and avoid potential fraud”, concluded Deputy Governor Fusha.

In the panel of this forum, Deputy Governor Fusha disclosed to the participants some of the recent actions undertaken by the CBK, which are in line with the recommendations of the National Council of Payments issued from the January 2024 meeting, with the wide participation of all parties, including private and public sector, and International Card Schemes.