Serbia is witnessing a rapid rise in QR code and mobile phone-based payments, according to the National Bank’s data for the third quarter of 2024. From July to September, there were 21.7 million transactions, marking a nearly 30% increase compared to the same period in 2023. While some citizens have expressed concerns about potential fraud, authorities assure that the system remains secure.
Instant payments are gradually replacing traditional cash and card methods. Payments via QR codes are becoming the preferred choice, with users able to complete transactions in just a few clicks. The National Bank of Serbia reported over 22 million transactions in the third quarter, with a total value of approximately 270 billion dinars (around 2.5 billion euros).
To make an instant payment, users simply need their bank’s app and the “IPS Scan” option on the home screen. Scanning a QR code, such as one on a bill, ensures the payment reaches the recipient’s account within seconds.
Bill payments are the most common use of instant payments, with 17 banks participating in the system, making it accessible to about 4.5 million citizens.
Simpler and cheaper option
Aleksandar Stanojević, Head of the Department for Business Support and Development of New Products and Services at the National Bank, highlighted that instant payments can be used at both physical and online points of sale. The system also allows for peer-to-peer (P2P) transfers, enabling users to send money to others using just a mobile phone number.
Aside from being more convenient, instant payments are also more cost-effective for businesses. Bank fees for these transactions are, on average, half the cost of traditional card payments and terminal transactions.
Boris Stojanović from the Association of Protectors of Entrepreneurs and Businessmen of Serbia believes the state can further encourage QR code usage but suggests a gradual approach. He points out that not all utility and telecom companies currently include QR codes on their bills, making the process slower for consumers who still need to manually enter payment information.
Security assurances
Despite growing popularity, some people remain cautious about instant payments, concerned about the security of their transactions. However, the National Bank of Serbia assures that the system is safe when used properly.
Aleksandar Stanojević advises users to follow bank guidelines, keep their payment instruments secure, and avoid sharing their passwords. If issues arise, such as failed transactions, users should contact their bank, which will initiate a complaint procedure. If fraud is detected, the user will be reimbursed.
Looking ahead, instant payments may soon be available via the Viber app, as the National Bank of Serbia has formed a strategic partnership with the platform. The payment feature is already in use in countries like Germany, Greece and Cyprus.