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On July 9, 2025, the Central Bank of Montenegro (CBCG) unveiled a significant package of payment reforms designed to remove friction in the movement of money, accelerate both domestic and cross-border transactions and further align the country’s payment landscape with the integration of the Single Euro Payments Area (SEPA).

The reforms bring three headline changes for banks: stricter caps on SEPA credit transfer fees; extended payment system operating hours (including weekend processing); and a streamlined, lower tariff structure for CBCG settlement services. Together, these measures signal a clear shift towards cost reduction, operational efficiency and increased service availability. These themes will reshape pricing strategies, settlement processes and competitive positioning in Montenegro’s payments market.

The bigger picture 

Montenegro formally applied for participation in the Single Euro Payments Area (SEPA) in , marking a strategic step towards deeper financial integration with the European Union. The application set in motion a multi-stage process of aligning domestic payment legislation, infrastructure and oversight with SEPA’s technical standards while achieving the EU “acquis communautaire” (EU principle that all member states must implement and align with EU laws). This effort reflects Montenegro’s broader commitment to aligning with EU standards overall, with SEPA integration representing one important component of that process. 

Following a period of legislative amendments and system upgrades, Montenegro was officially admitted to SEPA in , enabling citizens and businesses to send and receive euro payments under harmonised conditions across the SEPA zone. The European Payments Council acknowledged Montenegro’s significant efforts in aligning its national payment systems with EU standards. This milestone is significant as Montenegro became one of the  to be brought within SEPA’s geographical scope and is , alongside Albania. This sets a precedent for other aspiring countries looking to become members. 

Montenegro  in April 2009, with accession negotiations beginning in 2012. On a broader scale, SEPA integration reinforces Montenegro’s credibility as a serious EU accession candidate, demonstrating its ability to adopt complex EU frameworks ahead of full membership. It enhances cross-border trade and investment by removing payment barriers, while signalling to the financial sector that the country is open for deeper integration with European markets. For the Western Balkans, Montenegro’s participation in SEPA provides a tangible example of how regulatory convergence in the payments sector can translate into economic benefits and political momentum towards EU membership. 

Montenegro is not alone in this development; Albania (since November 2024), North Macedonia (since March 2025) and Serbia (since May 2025) have also joined SEPA, signalling a broader regional alignment in the Western Balkans. The fact that multiple Western Balkan states are now operating under the same payments framework creates a shared regulatory and economic agenda, strengthening cross-border integration and reinforcing their collective positioning towards eventual EU accession. This regional adoption of SEPA not only facilitates smoother financial flows and lowers transaction costs but also provides a political signal of commitment to European standards.

Why should you care? 

Banks should pay close attention to the October 6, 2025 enforcement date of the above decision, when Montenegro’s new SEPA fee caps will take effect. The rules place strict limits on what can be charged to customers by banks for executing and receiving SEPA credit transfers, with several key thresholds to note:

• First daily transfer for individuals up to €200: Maximum fee of €0.02, effectively making small-value payments nearly cost-free for consumers.
• Electronic transactions up to €20,000: Maximum fee of €1.99, meaning larger business and personal transfers should face reductions in cost.
• Electronic transactions over €20,000: Maximum fee of €25, which should compress margins on high-value transfers.
• Payments in-branch over €20,000: Maximum fee of €50, meaning over-the-counter processing remains expensive but still capped.
• Receiving SEPA transfers: Capped at €1.99 for amounts up to €20,000 and €25 for higher values, limiting income from inbound payments.

These caps will directly affect banks’ revenue streams, especially for institutions reliant on payment fees as a steady income source. Banks must act now to:

1. Audit current pricing against the new thresholds.
2. Update core banking and payment systems to automatically apply the new limits.
3. Revise customer agreements and disclosures to reflect the reduced charges.

With less than a year to prepare, the October 6, 2025 go-live date should be treated as a hard compliance and operational deadline, but also as an opportunity to reposition services, focusing on speed, reliability and value-added offerings.

Banks should prepare for a major operational shift in Montenegro’s domestic payment system, with phased changes beginning from August 18, 2025. Under the amended operating rules of the Central Bank of Montenegro Payment System:

• From August 18, 2025: The RTGS system (transactions over €1,000) will now operate from 08:00 until 20:00. The DNS system (transactions under €1,000) will now operate until 19:30, providing more flexibility for lower-value bulk payments.
• From October 2025: Both the RTGS and DNS systems will operate on weekends, enabling continuous payment processing throughout the week, allowing faster settlement capabilities.
• From July 2026: Integration of the TARGET Instant Payment Settlement (TIPS) clone platform will enable 24/7 instant payment processing, bringing Montenegro in line with EU instant payment infrastructure.

 Banks will need to:

1. Adjust internal payment processing schedules and staffing to accommodate later cut-offs and weekend operations.
2. Update customer communications to reflect the extended service availability.
3. Plan for instant payments integration in advance of the July 2026 TIPS go-live date to avoid losing market share to early adopters.

Weekend processing and later daily cut-offs mean banks can initiate and complete transactions outside traditional banking hours and this reduces reliance on overnight or next-day settlements, freeing up liquidity more quickly. These extensions will not only improve liquidity management and customer experience but also increase competitive pressure to offer faster settlement services. 

The first operational deadline, being August 18, 2025, left limited time to reconfigure systems, optimise workflows and test extended-hour processing before the change became mandatory.

Conclusion 

Montenegro’s latest package of payment reforms is more than a technical upgrade; it is a strategic leap towards full integration with the EU’s financial ecosystem. With hard deadlines approaching in October 2025, and instant payments on the horizon for July 2026, banks face a compressed window to adapt systems, pricing models and service strategies. Those who act early will not only meet compliance obligations but also position themselves to capitalise on faster settlement capabilities, reduced transaction costs and a market increasingly aligned with SEPA’s high standards. For the Western Balkans, Montenegro’s journey underscores a bigger truth: payment modernisation is not just about moving money more efficiently, it is about moving economies closer to full European market integration.