CBK at the “Payments Forum 2025”: Modernization of the payment system, a national priority toward financial inclusion and European integration

The Central Bank of the Republic of Kosovo (CBK) participated in the "Payments Forum 2025 - The digital payments ecosystem in Kosovo" as an institutional partner within this high-level forum on the future of digital payments in the country. The event was co-organized by the Kosovo Banking Association and VISA, with the participation of an expert from the International Finance Corporation (IFC) part of the World Bank Group.

In his opening remarks, the Governor of the Central Bank of the Republic of Kosovo, Mr. Ahmet Ismaili, described the forum as an important initiative for open dialogue to address the technological advancements needed within the financial ecosystem. He emphasized that financial inclusion begins with accounts and payments, as the foundation for accessing other financial services and finance, contributing directly to the country's economic development.

Governor Ismaili highlighted the progress made in both legal and technical infrastructure, starting with the basic account service, already used by over 400,000 citizens. He also outlined key initiatives to modernize Kosovo's payment infrastructure and connect it with the European Union's payment systems, in line with the CBK's Strategic Plan 2024-2028, which places innovation and digitalization at its core.

Highlighting the progress made in aligning Kosovo's legislative framework with that of the European Union, with the goal of integrating into the EU's financial system, it was noted that three key laws and over 20 new regulations have established the legal foundation for Kosovo's application to join the Single Euro Payments Area (SEPA). Unfortunately, due to the delay in publishing these laws in the Official Gazette and their subsequent entry into force, and consequently the related regulations, the application process, despite significant progress and successful preparatory work, was not finalized or evaluated for SEPA membership this time. However, once the legal conditions are in place, the process will continue as an absolute priority.

Another major development, according to Governor Ismaili, is the TIPS Clone project implemented by the Bank of Italy, with participation from five other central banks in the region. This system will enable instant payments 24/7 within seconds, including payments via mobile phone, QR code, and Request-to-Pay (RtP), as well as developments in open banking. These services will significantly improve the experience of citizens and businesses. This national infrastructure will serve as a key foundation for future financial integration with the EU and was therefore chosen as a strategic solution for both domestic and cross-border payment infrastructure.

Governor Ismaili also stressed the importance of cybersecurity in this transformation process, noting that the CBK has approved a Regulation on Information Systems and Cyber Risk Management, developed in line with EU standards. In parallel, financial education, consumer protection, and responsible financial service delivery remain priority areas for the CBK, both in raising awareness of cyber risks and safeguarding personal data.

He further mentioned the signing of a Cooperation Agreement with the European Central Bank on combating euro banknote counterfeiting, the first of its kind at this level, which strengthens the integrity of money in circulation, monetary sovereignty, and financial stability.

At the end, Governor Ismaili noted that the CBK, in partnership with the IFC, is implementing a multi-year project aimed at transforming Kosovo's payment and digital services environment by enhancing financial inclusion and aligning with European standards, fully in line with the forum's theme and expert discussions that followed.

During the panel discussion on "The Future of Digital Payments in Kosovo", Deputy Governor Mr. Dardan Fusha addressed ongoing developments and upcoming processes related to the digital transformation of the financial sector, supported by integration into SEPA, instant payments, and open banking. Together, these services contribute to a more efficient, faster, safer, and more accessible payment system, advancing the digitalization and modernization of the financial sector. In this context, alongside the launch of Google Pay and Apple Pay in Kosovo, concrete evidence of progress toward digitalization, other developments were highlighted, such as QR Code standardization, the issuance of IBANs for non-bank financial institutions, and enabling their participation in the payment (settlement) system under the new Payment Law. These measures will boost competition and financial inclusion, key objectives of the CBK.

The panel, chaired by IFC expert Mr. Matthias Timm, featured representatives from VISA, the financial sector, and international institutions, focusing on the regulatory and implementation challenges of advancing toward the future of digital payments.

The CBK remains fully committed to advancing the legal and infrastructural framework in the field of payments, as one of its legal objectives, in line with its Strategic Plan and in cooperation with local institutions, the financial sector, and key international partners, to whom it expresses sincere appreciation for their collaboration and professional support.