New fast payment system aims to connect Western Balkans with EU's financial network

January 10, 2025 | Rome – The launch of a new fast payment system is set to strengthen financial ties between the Western Balkans and the European Union. Today, the Bank of Italy hosted a signing ceremony for the project at its “Koch Palace” headquarters, with top officials from the region’s central banks in attendance.

The project will see the Bank of Italy roll out the TIPS service, a platform for real-time payment settlements that has already been adopted by the EU. TIPS, developed and managed by the Bank of Italy on behalf of the Eurosystem, enables instant, secure payments – a major advancement for the participating nations: Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Albania.

Fabio Panetta, Governor of the Bank of Italy, and Deputy Governor Chiara Scotti joined central bank governors from the region to sign the agreement. The European Central Bank (ECB) has approved the initiative, which will allow the Western Balkans to modernize their payment systems and improve financial integration with the EU.

While North Macedonia can join the project at a later date, the new payment system will support payments in all the local currencies and is set to become fully operational within 18 months. This new infrastructure promises to make cross-border transactions more efficient, low-cost, and secure, benefiting both businesses and consumers in the region.

This step forward is seen as a key move in aligning the financial systems of the Western Balkans with those of the EU. The fast payment network will offer a crucial link for faster, cheaper payments, ensuring the region remains competitive in the global market and strengthening ties with European financial institutions.