The views expressed in this article are solely those of the author and should not be attributed to the European Payments Council.

We spoke with Andrija Jovović, Director of the Payment System Department from the CBCG about the country’s journey towards SEPA integration, digital payment adoption, and the meaning of this transformation for consumers, enterprises, and Montenegro’s path to EU membership.

How would you describe the key features of Montenegro’s current payment landscape and what notable changes have occurred in recent years?

Montenegro’s payment landscape is shaped by a compact, euroised banking sector of eleven licensed banks operating in an interoperable environment. Although not a formal member of the eurozone, the country uses the euro as legal tender, relying on cross-border infrastructure for international payments. One structural characteristic has been the relatively narrow correspondent banking base, as most banks maintain only a few key relationships. However, Montenegro’s alignment with EU technical and compliance standards – especially through its SEPA accession process – has begun to expand this base. Notably, the country maintains a robust, EU-aligned anti-money laundering/countering the financing of terrorism (AML/CFT) framework and has never appeared on the Financial Action Taskforce (FATF) or Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) grey lists, reinforcing confidence among international partners.

Recent years have seen a rapid expansion of electronic payments and digital banking. From 2020 to 2024, mobile payment users nearly quadrupled, and internet banking users more than doubled among both individuals and businesses. The CBCG has led significant reforms, including the migration of real time gross settlement (RTGS) and deferred net settlement (DNS) systems to ISO 20022, and the introduction of online clearing. These developments have improved settlement speed, flexibility, and data quality, positioning Montenegro as a digitally capable and trusted participant in the regional and European payments ecosystem.

In November 2024, the EPC's board approved the inclusion of Montenegro in the geographical scope of the SEPA payment schemes. What advantages do you foresee from this integration?

Montenegro’s inclusion in SEPA is a key milestone in the country’s financial and EU integration journey. It allows Montenegrin payment service providers (PSPs) to execute euro transactions under the same rules and standards as their EU counterparts, significantly enhancing cross-border interoperability. 

The entire Montenegrin banking sector is scheduled to go live with SEPA operations on 6 October 2025, marking a full transition to SEPA-compliant euro payments. This move also signals institutional trust in Montenegro’s regulatory readiness and strengthens its position within the European payments ecosystem.

For citizens and businesses, SEPA brings immediate benefits. Euro payments across Europe can now be made with the same speed, cost, and convenience as domestic ones. This lowers transaction fees, increases competition, and simplifies trade and remittance flows. For SMEs and exporters, it reduces settlement friction and expands access to European partners. Strategically, SEPA lays the groundwork for digital innovation and deeper integration into EU infrastructures such as Transeuropean Automated Real-time Gross-settlement Express Transfer (TARGET) and TIPS, while supporting Montenegro’s broader objective of EU accession by 2028.

Have the CBCG or government measured the economic impact of inclusion in SEPA? What are the anticipated quantitative benefits for Montenegrin citizens and enterprises?

The CBCG's quantitative assessment of SEPA’s economic impact revealed both direct savings and broader macroeconomic benefits. 

Based on 2023 data, SEPA integration is expected to yield nearly thirty-eight million euros or around 0.54 percent of GDP annually through lower banking fees, reduced business costs, improved remittance channels, and expanded digital access.

For citizens, the analysis projects ten and a half million euros in annual fee savings, while digital inclusion adds another three and a half million euros. For enterprises, SEPA reduces the cost and time of euro transactions, enhances financial predictability, and supports SMEs’ integration into EU supply chains. Looking ahead, the combination of SEPA and the TIPS Clone instant payments platform could generate up to one hundred and sixty million euros in total annual economic gains, equivalent to 2.3 percent of GDP. Over the next decade, this could raise per capita income by over two thousand five hundred euros and increase Montenegro’s income convergence with the EU from fifty percent to more than sixty-one percent.

These reforms are not just technical upgrades but strategic tools for inclusive growth, deeper EU financial integration, and progress towards full EU membership.

How have electronic payment methods – such as mobile payments, e-wallets, and online banking – evolved in Montenegro, and what impact are they having on consumer behaviour and financial inclusion?

Electronic payment methods in Montenegro have expanded rapidly over the past four years, reflecting a major shift in how individuals and businesses interact with financial services. Between Q4 2020 and Q4 2024, the number of individuals using internet payments tripled to nearly 225,000, while mobile payment users grew from around 72,000 to over 208,000. The corporate sector has followed suit, with internet banking users rising from 20,700 to over 76,000 and mobile payment users increasing over thirteenfold from 4,000 to over 52,000. This surge highlights increasing digital trust and maturity across the economy, particularly among SMEs, as Montenegro modernises its payment infrastructure.

This digital transformation is advancing financial inclusion by expanding access to secure, user-friendly payment services – regardless of geographic or socioeconomic barriers. It also supports transparency, efficiency, and the broader transition to a cashless economy. 

Montenegro is laying the foundation for a fully interoperable, inclusive, and EU-aligned digital financial ecosystem.

How do you see the Montenegrin payments sector developing in the near future?

The Montenegrin payments sector is undergoing a structural transformation aligned with the country’s goal of EU membership by 2028. This reform is driven by four key pillars: SEPA integration, the launch of the TIPS Clone platform in 2026 for 24/7 real-time payments, adoption of ISO 20022 standards, and preparations for direct participation in pan-European infrastructures such as TARGET and TIPS. Together, these initiatives are modernising Montenegro’s financial architecture, improving interoperability, reducing costs, and enhancing user trust across domestic and cross-border transactions. With SEPA Credit Transfers expected by October 2025 and the CBCG's RTGS and DNS systems already migrated to ISO 20022, the groundwork for full EU alignment is well underway.

This transformation is also advancing the shift toward a cashless, digitally inclusive economy. With eighty-five percent of the population banked and rapid uptake of mobile banking, Montenegro is positioning itself as a small but agile market attractive to global fintech players. The CBCG is also prioritising financial education to ensure underserved groups and SMEs benefit from these changes. For the CBCG, payment modernisation is not just technical, but also a strategic lever for economic resilience, digital innovation, and European integration.