Montenegro and Albania join the Single Euro Payments Area

This development follows the European Payments Council’s (EPC) approval, representing a significant step forward in integrating the Western Balkans into EU structures. The inclusion of these nations in SEPA aligns with the EU’s Growth Plan, which seeks to enhance socio-economic integration of the Western Balkans through phased access to elements of the EU single market. This progression is contingent on alignment with EU regulations and standards, known as the EU acquis Communautaire. 

With the EPC’s decision, payment service providers (PSPs) in Montenegro and Albania can begin the process of joining SEPA schemes, which are frameworks enabling seamless euro-denominated payments across borders. This opportunity will reduce transaction costs and improve financial transfer efficiency between these countries and SEPA members. 

The European Commission, in partnership with the World Bank, is supporting this transition through a project funded under the Instrument for Pre-Accession Assistance (IPA). The project is focused on preparing PSPs in Montenegro and Albania, as well as other Western Balkan countries, to meet SEPA participation requirements.

Context on SEPA and the European Payments Council

The European Payments Council (EPC), established in 2002, is an independent association that develops standardised mechanisms for euro payments. Its membership includes 79 organisations comprising payment service providers and their associations. At the time of writing, approximately 4,000 banks and financial entities participate in SEPA schemes, which facilitate more than 50 billion euro payment transactions annually across 36 countries. 

SEPA schemes include options such as the SEPA Credit Transfer, SEPA Instant Credit Transfer, SEPA Direct Debit (SDD) Core, and SDD Business-to-Business schemes. These frameworks are continually updated to simplify cross-border euro transactions and promote financial integration across member states.