TIRANA, Oct 7 /ATA/ Bank of Albania Governor Gent Sejko called the execution of Albania’s first euro transaction through the Single Euro Payments Area (SEPA) a historic milestone for the country's financial market.
“This is more than just a technical upgrade to the payment system — it marks a leap forward in Albania’s journey toward integration with Europe’s financial infrastructure,” he said at the launch event, which was also attended by EU Ambassador to Albania, Silvio Gonzato.
He emphasized that Albania’s entry into SEPA, finalized in November last year, was the outcome of a well-organized and collaborative process. The Bank of Albania, working closely with all second-tier banks and financial institutions, has been fully committed to meeting the required technical and regulatory standards. As of now, all 11 domestic banks are prepared to provide SEPA services to individuals and businesses alike.
"This moment is not a matter of coincidence; it reflects years of dedicated effort by the Bank of Albania and the country's financial institutions, who have steadily worked to build the foundations of a modern payment system," he highlighted.
Sejko emphasized that the Bank of Albania played a crucial role throughout this process.
“Joining SEPA was a strategic objective of the Bank of Albania, directly linked to the European Union’s New Growth Plan and the regional project ‘For the Modernization of Payment Systems in the Western Balkans.’ With valuable assistance from the World Bank and thanks to coordination with all local stakeholders, the criteria were met on time, and the services were successfully launched. This achievement enhances the country’s capacity to absorb funds and reliably advance on the path toward European Union membership,” Sejko stated.
Our journey, Sejko pointed out, has required time, dedication, and partnership, and today we are proud that Albania is part of this unique European system.
“The next phase is underway: optimizing the adoption of this standard by banks and businesses, increasing user education, and further advancing payment digitalization. The Bank of Albania encourages commercial banks and financial institutions to actively market SEPA services, clearly communicate the benefits to their clients, and invest in upgrading digital platforms. It is only through the collective effort and commitment of all stakeholders that Albania will fully unlock the potential of this historic integration,” the Governor remarked.
“SEPA translates our vision of financial integration into tangible benefits for citizens and businesses: lower costs, faster transactions, and increased security,” Sejko further stated.
More specifically, much lower fees: transferring money from Albania to SEPA member countries now costs up to five times less than before;
Fast transactions: electronic payments are quicker, more secure, and more convenient.
Transparency and equality: a payment from Tirana to Rome no longer costs more than a payment within Tirana.
Meanwhile, Sejko added, there will also be a drastic reduction in fees for incoming payments.
“This European standard is now a reality for Albania, aligning our payment infrastructure with that of EU countries,” he stated.
He noted that integration into SEPA, along with the growth of digital payments, is projected to save around 20 million euros in the first year, with these savings increasing progressively over time. For comparison, the Bank of Albania’s AIPS Euro system, operational since January 2022, has already saved the domestic market about 140 million euros.
“This shows that the impact of SEPA will be even broader, including cost reductions and increased operational efficiency for both citizens and businesses,” the Governor stated.
On a broader scale, he added, integration into SEPA translates into social and regional benefits: from reducing informality and remittance costs to increasing financial inclusion and convergence with the European market.
According to World Bank estimates, a 10% increase in digital payments leads to a 2% reduction in the level of informality.
Albanian emigrants and their families can save up to tens of millions of euros per year thanks to sending remittances through SEPA banking channels.
At the regional level, until now, sending money between businesses in the Western Balkans has cost up to 10 times more than within the EU. With SEPA, this cost drops to levels comparable to those in Europe.
“This development is not just a technical achievement in payment systems. Integration into SEPA makes our financial market more competitive, increases investor confidence, and brings Albania closer to the highest standards of the European Union. Strategically, it raises readiness for other EU financial integrations, making our infrastructure more suitable for future innovations and for deepening connections with capital markets,” said the Governor.
Furthermore, he emphasized that the practical effect for Albanian citizens and businesses is threefold: lower fees, faster processes, and stronger operational guarantees.
Sejko assured that the Bank of Albania will continue to work tirelessly to ensure a modern, sustainable financial system that is oriented toward the needs of citizens and the economy.
“We remain committed to ensuring that this transformation becomes a platform for innovation and financial inclusion, where Albanian citizens and businesses feel more empowered and closer to Europe,” he added.
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