TIRANA, April 22/ATA/ Non-cash payment usage in Albania averages 26 transactions per capita annually.

During a joint meeting with INNVEST and the Ministry of Economy and Innovation, Director of Payment Systems, Accounting and Finance at the Bank of Albania Ledia Bregu pointed at cases of temporary, single-use accounts designed to capture social benefits.

“Since 2018, non-cash payments per capita have surged from 4.3 to over 26, marking significant progress in digitalization. While this marks a major improvement, we still lag behind European standards, where per capita transactions exceed 50 to 80 annually”, said Bregu.

Meanwhile, Deputy Minister of Economy and Innovation Enkelejd Musabelliu emphasized the new mandate requiring POS systems in travel and hospitality, aiming to streamline digital payments and reduce fees for businesses.

“To accommodate the diverse payment methods of international visitors, we must implement robust, low-cost digital payment solutions. For this initiative to succeed, electronic transaction fees must be lower than cash handling costs”, said Musabelliu.

The Bank of Albania is cutting interchange fees to lower electronic payment costs for local merchants. However, mandating POS terminals is a step toward modernization, but it must be accompanied by fiscal incentives to ease the burden on merchants. Despite upfront costs, these measures will formalize the economy and, in the long run, boost tax collection.

“Our cashless strategy lacks tax incentives, which are crucial. Data indicates that targeted incentives for merchants using digital payments are highly effective at bringing shadow economy transactions into the formal sector,” Bregu added.

To foster competition and expand payment choices, the Bank of Albania is developing an instant system enabling QR-code mobile payments at retail points. /a.f/p.s./