Today, Montenegro and Albania took a significant step in their European integration journey by becoming the first-ever enlargement countries to join the Single Euro Payments Area (SEPA) geographical scope, following approval from the European Payments Council (EPC). This development exemplifies the impact of the EU’s Growth Plan, which aims to accelerate the socio-economic integration of the Western Balkans into the EU. The plan includes facilitating progressive access to specific areas of the EU single market based on alignment with the EU acquis communautaire.
The EPC is a not-for-profit association comprising 81 payment service providers (PSPs) and their respective associations. Established in 2002 by the European banking industry, its mission is to develop electronic euro payment instruments. Currently, nearly 4,000 banks and PSPs are active participants in SEPA.
As a result of the EPC’s decision, payment service providers in Montenegro and Albania will have the opportunity to join various SEPA schemes. However, this will depend on individual commercial institutions completing a separate process managed by the EPC. This milestone will streamline financial transfers in euros and reduce transaction costs between the two countries and other SEPA members.
Moreover, through a project funded under the IPA instrument and implemented by the World Bank, the European Commission will continue to support the preparation of Montenegro and Albania’s PSPs, as well as other Western Balkan countries looking to join SEPA soon.
