The Bank of Albania’s Supervisory Council kept its policy rate at 2.5% and approved regulations governing instant payments, existing payment systems and card interchange fees. The overnight deposit and lending rates remain at 1.5% and 3.5%, respectively. The payment system package establishes the framework for the Instant Payment System (IPSA), which will enable payments in ALL and EUR around the clock throughout the year. Payments will be completed within 10 seconds of acceptance by the payer’s payment service provider. The regulations define participants’ rights and obligations, enable connections with existing infrastructure and reflect legal changes broadening participation in payment systems operated by the central bank, in line with the European Union framework. IPSA implementation forms part of a joint project involving five Western Balkan central banks, with technological infrastructure and operational support provided by the Bank of Italy using the European TIPS instant payment system model. The separate card payment regulation introduces caps on interchange fees, which form part of merchants’ costs of accepting card payments. The caps aim to reduce those costs and encourage more merchants to accept cards. The regulation also seeks to strengthen competition and improve fee transparency in the payments market.
Bank of Albania holds policy rate at 2.5% and approves payment system rules and card interchange fee caps
The Bank of Albania maintained its policy rate at 2.5% and adopted regulations for instant payments, existing payment systems and card interchange fees. The instant payment framework provides for payments in ALL and EUR at any time, completed within 10 seconds of acceptance by the payer’s payment service provider. The card regulation caps interchange fees to lower merchants’ acceptance costs and encourage wider card use.