The Central Bank of Bosnia and Herzegovina (CBBH) has established a domestic instant payment system, which is the most significant step forward in the modernization of BiH’s payment infrastructure in the last 25 years, the institution announced.
The system is available to all commercial banks in Bosnia and Herzegovina from the first day, and in the initial phase Intesa Sanpaolo Banka BiH, Raiffeisen Bank BiH and Sparkasse Bank BiH joined, which made the necessary technical adjustments and successfully completed testing. Together, these three banks make up a quarter of the total assets of the banking sector in Bosnia and Herzegovina. Citizens and business entities, clients of these banks, as well as others, when they join, will be able to execute payment transactions within a few seconds, regardless of whether it is a working day, weekend or holiday. The system is available 24 hours a day, seven days a week, throughout the year.
Instant payments bring numerous benefits to citizens, the economy, banks and the overall economy of Bosnia and Herzegovina. They enable citizens to have funds available immediately. They bring faster inflow of funds, more efficient cash flow management and better liquidity to the economy. They provide banks with a modern infrastructure for the development of new digital services and the improvement of the user experience.
The CBBH fee for processing a transaction in the instant payment system is lower than the existing fee for processing transactions in the giro clearing system.
“By establishing and putting into operation the domestic instant payment system, Bosnia and Herzegovina gets a modern payment infrastructure aligned with European standards and ready for the future development of digital financial services. The Central Bank of Bosnia and Herzegovina has established a safe, reliable and modern payment system. This is not only a technological improvement, but an investment in a more efficient economy, a more competitive financial sector and better services for citizens and the economy of Bosnia and Herzegovina. In this way, BiH becomes equal to the member states of the European Union – said the Governor of the Central Bank of BiH,” Jasmina Selimović.
The domestic instant payment system was established on the model of the European one, which was adapted for the countries of the Western Balkans by the Bank of Italy with the consent of the European Central Bank. The project was implemented with the support of the European Commission and the Delegation of the European Union in Bosnia and Herzegovina.
“Launching a domestic system for instant payments is an important step towards a single digital market of the European Union. By harmonizing the payment infrastructure with European standards, the Central Bank of Bosnia and Herzegovina contributes to safe, simple and instant financial transactions for citizens, while paving the way for future integration into cross-border European payment networks. The European Union allocates 2 million euros to support the creation of the TIPS Clone Project and to finance its maintenance during the first year. This result, achieved in close cooperation with European partners, shows that progress can be achieved with a clear vision and professional dedication,” said the head of the European Union Delegation and the special representative of the European Union in Bosnia and Herzegovina, Ambassador Luigi Soreca.
In the coming period, the CBBH plans to further develop the system by introducing new functionalities and additional services (so-called overlay services), which will enable citizens and the economy even simpler, safer and more innovative payment methods, such as QR code, and in a later phase, the possibility of cross-border payments.
On the occasion of joining the domestic payment system, the President of the Management Board of Intesa Sanpaolo Bank, Michele Castoro, says that he is particularly proud that this bank, in close cooperation with the Central Bank of Bosnia and Herzegovina, is one of the pioneer banks in Bosnia and Herzegovina that introduces instant payment for its clients.
“This achievement once again demonstrates our significant commitment to innovation and determination to provide concrete value by continuously improving the banking experience. We believe that instant payments will change the way citizens and the economy perform daily financial transactions,” he said.
Lars Frankemolle, Chairman of the Management Board of Raiffeisen Bank, also expressed his satisfaction with the modernization of the domestic payment infrastructure.
“Instant payments are not just a matter of technology. It’s about people and moments that matter. Whether you’re sending money to family, paying a supplier, or running a business, users increasingly expect transactions to be instant and seamless. We are proud that Raiffeisen Bank is among the first banks to support this transformation in BiH with the Central Bank of Bosnia and Herzegovina. Innovation creates value only when it improves people’s everyday lives,” he said.
Amir Softić, President of the Management Board of Sparkasse Bank BiH, congratulated the Central Bank of BiH for one of the important steps forward in the modernization of payment transactions in Bosnia and Herzegovina.
With further implementation throughout the banking sector, this service brings new value to citizens and the economy through safe, faster and more efficient execution of payment transactions. We are pleased that Sparkasse Banka is among the first partners of this process, and that through this service we will soon be able to offer our clients a new dimension of speed and efficiency of transactions – he said.
The establishment of the instant payment system was supported by the European Union with two million euros.
The Central Bank of Bosnia and Herzegovina has prepared operational, technical and regulatory conditions for the functioning of the system and adopted the Rules of Operation of the instant payment system.
Banks that are still adjusting their technical and operational conditions for the needs of the instant payment system will join gradually.
Information about the availability of the service, how to use it and the time of its introduction at individual banks will be available to clients directly at their banks.
