Zak Topuzi, head of the Association of Tour Operators, told Albanian Telegraphic Agency (ATA) on Sunday the move was a positive step that would support economic formalisation and improve services for tourists, but warned that high bank commission fees remain a major obstacle.

Prime Minister Edi Rama’s plan to reduce reliance on cash payments is ambitious and necessary, Topuzi said, adding that tourism and services would be among the main sectors affected.

According to him, tourism and transport account for about 43.6% of Albania’s total exports, making the sector strategically important to the economy, he said. However, Topuzi noted that electronic payments have been slow to take hold due to structural challenges.

“The main issue is the very high level of card transaction fees charged by commercial banks,” Topuzi said. While commissions in the European Union range between 0.3% and 0.6%, fees in Albania range from 1.8% to as much as 5%, he said.

For small service businesses operating on profit margins of 7% to 10%, such fees significantly erode earnings, Topuzi said, adding that banks can effectively take up to 30%–40% of business revenue in some cases.

He also said transaction costs are borne entirely by businesses rather than customers, making small-value payments impractical. “It is not reasonable to pay additional fees for a small transaction such as a cup of coffee,” he said.

Topuzi described the shift to electronic payments as a “systemic transformation” that goes beyond installing point-of-sale terminals, calling for regulatory intervention by the Bank of Albania to cap commission fees, as has been done in several European countries, including Greece and Switzerland.

Another unresolved issue, he said, is the inability to leave tips via bank cards. With around 12 million foreign tourists visiting Albania annually, the current system disadvantages service workers, as tips cannot be processed electronically.

Topuzi said the association has held talks with institutions and banks to address the issue, noting that electronic tipping systems are widely used across Europe and operate transparently through banking and tax channels.

He also stressed the need for information campaigns, training for businesses – particularly small operators – and investment in technical infrastructure, warning that full implementation within six months would be difficult without concrete support and lower bank fees.

Electronic payments would also help formalise Albania’s accommodation sector, where around 70% of capacity consists of apartments and villas operating as B&Bs, while hotels account for just 22%, Topuzi concluded.

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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 data from the Bank of Albania, online banking transfers rose 58.5% year-on-year in the third quarter of 2023 or to around 3.45 million transfers from less than two million online transfers completed by the banking system during the same period of 2022.

According to the central bank, the electronic payments via the home banking services accounted for 56% of the total of bank transfers in the third quarter. Online payments accounted for 57% of the total bank transfers in the first nine months of 2023.

The shift of bank transfers to electronic channels marks an important turning point in the relationship of the Albanian public with banking services.

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