Instant Payments
With the introduction of the TIPS Clone system, Montenegro has taken another important step towards alignment with European payment infrastructure
Citizens and businesses can now transfer money in a matter of seconds, 24 hours a day, all year round. At the same time, the new system also represents a significant advance in the digitalisation of the financial sector and in strengthening the country’s economic competitiveness. The Central Bank of Montenegro has brought its instant payment system (TIPS Clone) into operation, making Montenegro the first country to have implemented this platform successfully while simultaneously bringing on board its entire banking sector. The system allows funds to be transferred from one account to another within a matter of seconds, regardless of whether the transaction is executed on a working day, at the weekend or during a public holiday. The service is provided by all eleven banks operating in Montenegro, using existing electronic channels, with no need to open new accounts or install additional applications. The new infrastructure also brings significantly lower payment costs. By decision of the Council of the Central Bank, the fee for electronic instant payments of up to €200 is capped at five cents, while for larger amounts the fee may not exceed the price of a standard electronic transfer.
The Governor of the Central Bank of Montenegro, Dr Irena Radović, described the move as another important step in the process of European financial integration. “Following Montenegro’s successful accession to the SEPA system, we are now introducing European standards into domestic payments as well. Citizens and businesses are getting faster, simpler and more affordable payments — a direct benefit of European integration,” Radović said. Prime Minister Milojko Spajić described it as one of the most significant reforms of the domestic payment system, noting that electronic instant payments of up to €200 will be several times cheaper than before.
EUROPEAN STANDARDS IN PRACTICE
The introduction of the TIPS Clone system continues the process of bringing Montenegro closer to the European financial market, which began with the country’s entry into the SEPA area for credit transfers. The President of the European Central Bank, Christine Lagarde, described it as an important milestone in Montenegro’s financial integration. She recalled that, following accession to SEPA, the average cost of cross-border payments between Montenegro and the European Union fell by more than 90 per cent, taking the country from one of the most expensive markets for international transfers to one of the most competitive in the region. According to estimates by the Central Bank of Montenegro, the combined effects of SEPA integration and the introduction of instant payments could, over the long term, deliver annual economic benefits worth around 2.3 per cent of gross domestic product.
DIGITAL INFRASTRUCTURE FOR A NEW ECONOMY
Modernising the payment system amounts to far more than technological innovation. More efficient payments improve the business environment, increase liquidity in the economy, reduce transaction costs and contribute to greater financial inclusion. The World Bank’s Vice President for Europe and Central Asia, Antonella Bassani, said the modernisation would make financial services more accessible to tens of thousands of citizens, while the Governor of the Bank of Italy, Fabio Panetta, stressed that the project is an example of successful cooperation between European central banks and contributes to greater interoperability of payment systems across the Western Balkans. The project was also supported by the European Central Bank, the European Union and the World Bank, while the system was developed in cooperation with the Bank of Italy, which operates the original European TIPS infrastructure. For Montenegro, the introduction of instant payments is further proof that European integration is not merely an institutional process but a set of concrete reforms that improve citizens’ daily lives, raise the competitiveness of the economy and bind the country more closely to the single European financial market.
TIPS CLONE – KEY FACTS
• Money arrives within a matter of seconds
• The system operates 24 hours a day, seven days a week, 365 days a year
• All 11 banks operating in Montenegro are included
• For electronic instant payments of up to €200, the fee is no more than €0.05
• Existing mobile and online banking applications are used – no new accounts, no additional software
• Montenegro is the first country to implement the TIPS Clone platform in full, with its entire banking sector on board
• The project continues Montenegro’s financial integration into the European payment area following accession to SEPA