Albania Joins SEPA: A Strategic Move to Modernize Payments and Reduce Informality

 Albania has officially joined the European Payments Area (SEPA), marking a significant milestone in the country’s financial modernization. Luljeta Minxhozi, Deputy Governor of the Bank of Albania, discussed this achievement in a recent interview on ABC News’ “Sheshi i Dollarit.”

Luljeta Minxhozi

Minxhozi emphasized that Albania’s inclusion in SEPA is the result of a multi-year effort that began in 2017. At that time, the informal economy in Albania was still substantial, and aligning the national payment law with European standards was seen as a forward-looking step toward modernization.

“This has been a significant multi-year effort, starting with the approval of a new payments law in 2017. Albania took a bold step to adopt European payment standards, aiming to address informality and financial misuse in both banking and non-banking sectors,” Minxhozi explained.

The Deputy Governor highlighted that funds previously spent on money transfers can now be redirected to other development priorities. Furthermore, all financial institutions are expected to follow this lead, meeting clients’ expectations for speed, security, and cost-efficiency in payment services.

“Albania’s presence in the SEPA zone is excellent news for all financial institutions. While some may adopt the system faster than others, the overall security and confidence this provides will benefit the entire market. Clients expect quick, secure, and low-cost transfers, and this system also opens opportunities for non-bank financial institutions,” Minxhozi added.

Albania’s integration into SEPA represents a major step toward a modern, transparent, and efficient financial system, enabling the country to reinvest resources previously tied up in outdated transfer processes into broader economic development initiatives.