Albania, officially part of SEPA geographical scope

The Board of European Payments Council approved the application of Albania for participation into the SEPA payment schemes’ geographical scope. Since 21 November 2024, Albania is officially a member of SEPA. Thus, Albania becomes part of the first group of Western Balkan countries to join SEPA, as a pre-requisite of EU accession.

The Bank of Albania, with this participation, successfully achieves one of its main ambitions in the framework of the European integration process.

The Governor of the Bank of Albania, Mr Gent Sejko declared that: “Participation of Albania into the SEPA geographical scope marks a historic milestone for Albania, reflecting years of dedicated effort and unwavering commitment by the country’s institutions, financial sector, and partners to align with European standards and principles. Inclusion in SEPA will impact the financial and economic development of Albania, contributing to its further integration with the EU market.”

Participation of Albania into SEPA brings multiple benefits for Albanian citizens and the economy. Cost reduction is the first o, most tangible and measurable benefit for all Albanian citizens and businesses. In simpler words through SEPA, the Albanian citizens and businesses will carry out their payments and transfers just like their European counterparts and vice-versa.

The conduction of transfers through SEPA, will drive costs of cross-border Euro payments with its member countries to be 5 times lower at a minimum. Our preliminary assessments show that savings for the Albanian economy could amount at least EUR 20 million in the first year, to increase progressively in the next years. Simultaneously, the time of carrying out payments is reduced and competition is enhanced through the introduction of up-to-date and secure products and services.

In a broader plan, other benefits will extend to the fields of trade, tourism, remittances, direct investments, etc. Projections assess that Albanian economy, in the medium term, will benefit hundreds of millions Euro from participation in SEPA.

The work for participation in SEPA has started since 2021, when the Bank of Albania became part of the regional project “Advancing the Modernization and Integration of Payment Systems in the Western Balkans”. The Bank of Albania, in the payment area, has undertaken significant efforts in aligning the national payment systems and regulations with European Union (EU) standards, such as the approval of the Law “On payments services” and the regulatory framework for its implementation.

The Bank of Albania has guided and coordinated the work for submitting the official application for the participation of Albania into the SEPA.  On 12 June 2024, the official application of Albania for SEPA membership was signed, as the culmination of the work done and the coordination with all the institutions involved.   Thus, Albania became the first country in the region to send a formal application, which was successfully completed today with the decision of the European Payments Council to admit Albania to the SEPA’s geographical scope.

Info: The Single Euro Payments Area, known as SEPA, is the payment system of European Union for carrying out payments denominated in euro, at the same costs and facility domestically and across the EU countries.

• Press Release by the European Payments Council (English version)