Albania is now part of the Single Euro Payments Area (SEPA). Discover how the three SEPA schemes—credit transfer, instant credit transfer, and direct debit—are set to revolutionize cross-border euro payments.

In a significant step toward modernizing its financial landscape, Albania officially joined the Single Euro Payments Area (SEPA) on November 21, 2019. While this marks a milestone for the nation, the journey to enabling seamless cross-border euro payments for Albanian citizens requires further preparations. Commercial banks and payment service providers must individually apply to SEPA schemes to offer these services. With three distinct SEPA schemes available, Albania is on track to align its financial operations with European standards, heralding a new era of cost-effective, fast, and secure euro transactions.

What Are the SEPA Schemes?


SEPA, designed to standardize euro payments across member countries, offers three main schemes:

1. Credit Transfer Scheme


The credit transfer scheme simplifies euro payments between SEPA member banks. Transactions are typically completed within one business day, ensuring reliable and efficient transfers.

2. Instant Credit Transfer Scheme


The instant credit transfer scheme facilitates real-time transactions. With this option, euro transfers are executed within seconds, making it ideal for urgent payments.

3. Direct Debit Scheme


The direct debit scheme enables businesses and institutions to collect funds directly from customers’ bank accounts with prior consent. This scheme is widely used for recurring payments such as utility bills, phone subscriptions, insurance premiums, and more.

These schemes are designed to provide users with speed, convenience, and transparency, fostering greater trust in cross-border financial transactions.

How Banks Join SEPA Schemes


For Albanian banks and payment service providers to participate in SEPA schemes, they must meet specific criteria established by the European Payments Council. Only after fulfilling these prerequisites can institutions apply for membership.

Albanian payment service providers are expected to submit applications by April 2025, approximately six months before the operational readiness date (ORD). The ORD signifies the moment when banks are prepared to offer SEPA-compliant services. For Albania, the ORD is set for October 5, 2025, when cross-border euro payments will align with the standards of SEPA member countries in terms of cost, speed, and ease of use.

New Rules for SEPA Schemes in 2025


The European Payments Council has announced updated rules for SEPA operations, effective October 5, 2025. Albanian payment service providers aiming to join SEPA must adhere to these new regulations. The implementation of these rules will ensure that cross-border payments are efficient, standardized, and accessible for all participants.

A Leap Forward for Albania’s Financial Sector


Albania’s integration into SEPA represents a pivotal development in its financial system. By adopting the three SEPA schemes—credit transfer, instant credit transfer, and direct debit—Albania is set to transform the way cross-border euro payments are conducted. With the operational readiness date on the horizon, this step will not only enhance the nation’s financial infrastructure but also strengthen its ties with the broader European economic framework.