Kosovo has applied to join SEPA: what is it and what could change for payments?

Kosovo has submitted an application to join the Single Euro Payments Area, known as SEPA. If accepted, individuals and businesses could save money on transfers.

SEPA is a European Union initiative that enables individuals and businesses to make euro payments quickly, securely and at uniform rates across all participating countries.

What would Kosovo gain?

On the evening of November 6, the Central Bank of Kosovo described the application as an important step toward financial and economic integration with the EU, which Kosovo hopes to join one day.

The Central Bank of Kosovo estimates that inclusion in SEPA’s geographical area would save individuals and businesses around 55 million euros a year.

Financial experts have also previously told Radio Free Europe that membership would benefit everyone. Financial expert Nexhat Miftari explained that people receiving remittances or other transfers would pay much lower fees, while sending and receiving money would become faster, safer and easier.

Remittances sent by Kosovo citizens abroad to their families exceed 1 billion euros a year. A Kosovo citizen working in Germany previously told Radio Free Europe that high bank fees meant he sent money to his family only through money transfer companies.

Fees vary depending on the amount sent, the currency and whether the sender is an individual or a business. Radio Free Europe reported in 2025 that minimum international transfer costs ranged from 15 to more than 500 euros, depending on these factors. Kosovo’s potential inclusion in SEPA would significantly reduce both costs and transfer times.

As an example of the impact of membership, Albanian Prime Minister Edi Rama cited the experience of his country, which was admitted to the area last year. According to him, following admission, fees for bank transfers of 100 to 500 euros fell to between 1 and 3 euros. Previously, the recipient in Albania would receive 88–90 euros, as banks retained up to 10 percent of the amount.

The European Central Bank’s website explains that SEPA’s uniform standards have eliminated differences between domestic and cross-border payments, helping improve the efficiency and competitiveness of the European economy.

Kosovo’s application will now undergo an assessment of whether its legal and regulatory framework meets the conditions for entry into SEPA’s geographical area. According to the Central Bank of Kosovo, if the decision is positive, procedures will then follow to allow Kosovo’s financial institutions to participate in the relevant payment schemes.

How did Kosovo reach the application stage?

The process began in October 2024, when Kosovo submitted its pre-application for SEPA membership. According to the Central Bank of Kosovo, this step paved the way for consultations and preliminary assessments with the relevant European institutions. Since then, the bank says it has worked to address requirements, prepare documents and meet the legal, regulatory and technical conditions.

Before submitting its application, Kosovo had to align its legislation with EU requirements. This process required three significant legislative measures: the law on banks, the law on payment services and amendments to legislation on preventing money laundering and combating the financing of terrorism.

These laws had been referred to Kosovo’s Constitutional Court following complaints of procedural violations during their adoption. The court declared the Law on Payment Services unconstitutional on those grounds, while ruling that the law on banks complied with the Constitution.

Lawmakers subsequently passed the Law on Payment Services and approved amendments to the legislation on money laundering and combating the financing of terrorism. This paved the way for the SEPA application.

The Central Bank of Kosovo has said that, following submission of the application, it will continue working with European institutions, commercial banks and other payment service providers on the technical and operational preparations needed for full integration into SEPA schemes.

SEPA currently includes 41 countries: all EU member states, as well as non-EU countries, including Switzerland, the United Kingdom and Kosovo’s neighboring countries.