Central banks from Albania, Bosnia and Herzegovina, Kosovo, and Montenegro have signed an agreement with the Banca d’Italia to establish an instant payment system for the Western Balkans, based on the Eurosystem’s TARGET Instant Payment Settlement (TIPS) software. North Macedonia is expected to join the initiative at a later stage.

The platform, set to become operational by mid-2026, will enable instant payment transactions in the national currencies of the participating countries. This marks a significant step for Western Balkan nations toward deeper integration into the European Union’s financial ecosystem.

The system will leverage TIPS, a service provided by the Eurosystem that facilitates 24/7 settlement of instant payments in central bank money. TIPS currently supports transactions in euros and Swedish kronor, with Danish kroner to be added in April 2025. The service allows banks and payment providers to participate directly by opening a TIPS account or indirectly through agreements with other participants.

The initiative aims to modernize payment infrastructures across the Western Balkans, enhance regional financial connectivity, and align the region with European standards in financial technology and services.