29 June 2019 - The Central Bank of Montenegro has begun preparations for introducing instant payments, which, when put into use, will significantly increase non-cash payments in Montenegro, said the representatives of this supreme monetary institution to Pobjeda daily.
Instant payments are a new way to exchange money and purchase services in seconds. Compared with wire transfers, they allow the transfer of money from the payer bank account to the payee bank account almost immediately, instead of requiring few business days. These payment systems have been developed (and are currently under development) worldwide as the need faster and reliable transaction is the new economy common requirement.
Instant payments represent electronic retail payment solutions available 24/7/365 and resulting in the immediate or close-to-immediate interbank clearing of the transaction and crediting of the payee’s account with confirmation to the payer (within seconds of payment initiation).
The instant payment provides a number of innovative services, and the Central Bank of Montenegro claims that it will change the cash-payment and non-cash payment ratio.
"The trend of growth of non-cash payment transactions is expected, which will be affected by the instant payment for which the Central Bank started preparatory activities," said the representatives of the Central Bank of Montenegro, answering the question about what trends in non-cash payments is expected in the upcoming period.
Asked how much Montenegro is “lagging” in cashless payments compared to the countries of the region and the European Union, they said that they do not have enough comparative data to make a statement on that matter.
"By continuing to monitor and implement the European Union's legislation in the field of payment services, the CBM has provided all the necessary prerequisites for new services, which has led commercial banks to follow trends in the field of payment services, as do the world's banks. Electronic, card and mobile payments in Montenegro recorded a trend of continuous increase, and banks are increasingly available to customers, "the CBM explained.
Read more about the business environment in Montenegro at TMN's dedicated page.