Prime Minister Edi Rama stated today at the end-of-year media conference that, “Starting from June next year, every business operating in the tourism and transport sectors will have the obligation to guarantee alternative forms of payments for the citizens”.

According to the prime minister, this initiative aims for businesses to not only offer cash payments, but also other modern means, such as bank cards and electronic payment forms.

“Within the next year, every business in Albania will offer alternative forms of payments, so that anyone, local or foreign, tourist or visitor, has the opportunity to pay by card or through electronic means”, said Rama.

This measure is considered an important step towards formalization of the economy, increasing financial transparency and improving services for citizens and tourists visiting Albania. e.xh/j.p/p.s./

According to the Bank of Albania, the restriction on the use of cash cannot happen immediately because the citizens and businesses need time to adapt to the new payment methods.

Ledia Bregu, Director of Payment Systems, Accounting and Finance at the Bank of Albania, said in an interview with reporters that any measure should be taken by evaluating the current level of physical cash circulation.

According to her, the process requires sufficient time for citizens to embrace a new payment model, while the restrictions imposed must respond to the real living needs of the individuals.

Bregu emphasized that the reduction of cash is now necessary because its use is costly for the Albanian economy.

“Recent studies by the Bank of Albania and the World Bank show that the circulation of physical money costs the country about 1.7% of the GDP, much more than electronic payments,” said Bregu.

She added that the transition to digital payments will bring lower costs, greater efficiency and more transparency in the economy, making it easier to monitor and control transactions.

However, she noted, this process is accompanied by risks, the most important of which is related to the low level of financial education. According to Bregu, the lack of knowledge can increase the risk of fraud and misuse of data in the digital space.

The Albanian government has introduced new cash transaction limits as part of its “Cashless Albania 2030” initiative to combat informality and promote digital payments. These changes, included in the 2026 fiscal package, are expected to come into effect by January 1, 2026. The limit for cash payments between businesses is reduced from the current 150,000 lekë to 100,000 lekë. For the first time, a limit for cash transactions between individuals and self-employed persons/traders has been established, set at 500,000 lekë.

The process of reducing cash marks an important step towards modernizing the economy, but remains closely linked to raising citizen awareness and strengthening security in the use of digital services. e.xh/j.p/p.s./

“Thanks to the reforms and initiatives of the Bank of Albania, today about 78% of the adult population owns a bank account”, said Bregu.

“The digitization of payments has a very big impact on economic growth and market development. As a matter of fact, there is a high level of cash, but much has been done to increase electronic payments, digitization and financial education of the population”, she emphasized.

“Through the strategy of small payments and financial education, it is intended to acquaint citizens with the formal channels so that they have access to accounts and financial services.

In 2017, there were 4 out of 10 people who had a bank account, the lowest level in the region, today Albania is at the level of 78% of the adult population who have a bank account.

Studies show that 1.6% of the GDP is the cost of cash management, so the aim is to use electronic money”, said Bregu.

Bregu also stopped at the most recent initiative of the Central Bank, for opening a bank account at no cost for some categories (pensioners, the people in need, etc.).

She appealed for the use of digital channels because they cost less in Lek and time.

According to her, a major project with great benefits will be Albania’s membership in the Single Euro Payments Area- SEPA.

“From this membership, financial transactions with the countries of the European market will become simpler, faster and at a lower cost”, she emphasized.

On June 12 of the current year, the Bank of Albania sent to the European Payments Council Albania’s official application for inclusion in the geographical area of ​​the SEPA schemes. /p.s./

Attending the meeting as guests were Ervin Mete, Minister of Finance and Economy, Denis Deralla, Director of the Supervision Department at the Bank of Albania; as well as technical staff of the Ministry of Finance and Economy and the Bank of Albania.

Mete presented the draft law. He made a summary of the content, emphasizing that the draft law was prepared in cooperation with the Bank of Albania and in consultation with the World Bank and aims to create a legal basis for the payment account with basic services.

Among other things, the minister explained that the objective of this draft law is to promote the use of cash payments as little as possible and to increase the financial inclusion of the population, creating facilities for categories of consumers who belong to vulnerable groups, who have difficulty or find it impossible to open and maintain a bank payment account, due to the costs it carries.

“For all these categories, when they open accounts with basic services at second-tier banks, firstly, the law imposes the obligation that banks do not refuse to open an account for basic services and secondly, to offer services with zero fees in most of them, or with differentiated tariffs”, explained Mete.

The rapporteur of the draft law Milva Ekonomi assessed the importance of the draft law for promoting and increasing the financial inclusion of the population and underlined the importance of its drafting for the fulfillment of obligations within the EU integration process.

After questions and discussions, the committee approved in principle, article by article and in its entirety, the draft law in question, passing it on to the next plenary session for consideration. /r.e/p.s./

Statistics of the Bank of Albania show that the use of cash deposits at ATM cashpoints is growing rapidly. During the 6th month of 2022, the average value of ATM deposits was about ALL 2.26 billion. The monthly volume of ATM deposits has increased by 36% compared to last year. While the number of transactions (deposits) reaches an average of 43 thousand ATM deposits every month, with a 9% increase compared to the average of 2021.

At the end of June, the number of ATM devices enabling cash deposits reached 289, or about 35% of ATMs in the banking sector also enable cash deposits.

Moving these actions to automatic ATM cashpoints is a great convenience for banks and customers, because it saves time and creates spaces for the counters to be used only for those services that cannot be performed in an automated way.

Statistics show that, in average terms, cash deposits in ATMs account for about 16% of the amount of cash withdrawals from them. Cash deposits at ATMs can be made mainly in current accounts connected to a bank card, while deposits in time deposits or savings accounts must still be made at the counters. However, the further digitization and automation of banking services is expected to expand the spectrum of payments that can be made automatically at ATMs.

The more massive use of these channels would limit the outflow of physical money from the banking system./j.p/r.e/p.s./