Serbia is on track to achieve harmonization with EU regulations this year, marking a significant step towards implementing open banking within the country. This move is part of Serbia’s preparation to join SEPA, the Single Euro Payments Area. Nenad Petrović, from the National Bank of Serbia, detailed the practical implications of these changes in an interview with RTS.
Petrović, the director of the payment system sector at the National Bank of Serbia, highlighted that harmonization with the EU’s Second Payment Services Directive aims to enhance the payment services market. A key innovation under this directive is the introduction of open banking, which introduces two new services. The first service enables payment initiation directly from a user’s payment account, crucial for e-commerce.
“This allows payments to be made directly from the user’s account without the need for payment cards, introducing new payment service providers to facilitate this service. Combined with integration into instant payment systems, this creates opportunities for domestic online merchants to offer more efficient cashless payment solutions,” Petrović explained.
The second service involves providing users with a consolidated view of their account information.
“We’re talking about software tools and applications that enable users to view balances and transactions across all their accounts in one application. This functionality allows users to share this information with other financial service providers when applying for financial products such as loans, eliminating the need to gather bank statements manually,” Petrović elaborated.
SEPA, or the Single Euro Payments Area, is an EU initiative aimed at streamlining euro payments across member states. Serbia is currently in the process of aligning its regulations with SEPA requirements to facilitate smoother cross-border payments within the eurozone.
“We are preparing the application for SEPA membership, demonstrating our compliance with EU standards in payment services, banking operations, data protection, and other relevant areas. This step is crucial for ensuring Serbia meets the criteria set by the European Payments Council,” Petrović noted.
Membership in SEPA promises significant benefits, including faster and cheaper payments.
“The infrastructure we’re developing will enable payments to be processed in seconds, compared to the current situation where it takes days. This efficiency translates into cost savings across the payment chain, ultimately benefiting end-users with lower transaction fees,” Petrović emphasized.
In conclusion, Serbia’s strides towards open banking and SEPA membership signify a pivotal advancement in its financial infrastructure, promising enhanced convenience and efficiency in payment services for its citizens and businesses alike.
