"A historic milestone" - this is how the National Bank of North Macedonia described its accession to the Single Euro Payments Area (SEPA). In an interview for EUpravo Zato, they highlighted that this decision by the European Council is particularly significant because North Macedonia is not an EU member state, yet it has been granted access to European payment systems.

"This process is expected to bring numerous benefits to the entire economy, particularly in terms of cost and time savings when making payments to EU countries. Given that the cost of payments from the EU to Western Balkan countries is currently 12 times higher than payments within the EU, SEPA should enable more efficient, cost-effective, and faster cross-border payments," they stated for our portal.

Savings reflected in concrete examples

Access to SEPA represents a concrete step in modernising North Macedonia’s financial system. This membership allows for faster and more secure transactions, reducing the cost of international transfers and facilitating everyday business operations. For example, companies in North Macedonia can now send and receive euro payments more easily, aligning with the standard practices of the European Union. This step also helps reduce administrative barriers that previously existed in international payment systems, making trade and business transactions with EU member states smoother.

What is SEPA?

SEPA (Single Euro Payments Area) is a European Union initiative created to simplify bank transfers within the region. Member countries of this area can easily conduct cashless euro payments anywhere within the European Union, as well as in several non-EU countries.

Providing specific examples of the benefits, the Governor of the National Bank of North Macedonia pointed out that, according to World Bank estimates, remittance costs could decrease by approximately 3 percentage points.

"This will lead to savings of half a billion euros at the regional level in the Western Balkans. Currently, remittance costs are estimated at around 6.71% of the total transaction amount, while our economy relies significantly on remittance inflows from abroad, which account for up to 15% of GDP," they explained.

Additionally, with a simplified data set, payments will become much easier and faster. Once banks integrate into the SEPA payment system, transactions will be completed within a few hours during the day, while urgent (instant) payments will be processed in less than 10 seconds.

Digital preparation of banks

SEPA membership will accelerate the digital transformation of North Macedonia’s financial sector. By reducing reliance on cash transactions and promoting digital payment methods, it will support the development of a modern, secure, flexible, and inclusive financial ecosystem.

"However, to fully leverage these opportunities, it is crucial that banks prepare operationally. Together with the banking sector, the National Bank will work diligently to ensure complete readiness for SEPA integration by October 2025, which is the earliest possible date for banks from Western Balkan SEPA member countries to join the system," concluded the National Bank of North Macedonia.

(EUpravo zato)