The Governor of the Central Bank of Montenegro (CBCG), Irena Radović, and the Governor of the Bank of Italy, Fabio Panetta, have signed a Letter of Intent for the implementation of the TIPS clone project, which will enable real-time instant payments in Montenegro.
According to a statement from the CBCG, the document, signed today in Rome, formalizes the cooperation to establish a modern instant payment system in Montenegro.
“The TIPS clone system, developed based on the European Target Instant Payment Settlement (TIPS) system with the support of the European Central Bank, will allow citizens and businesses in Montenegro to make instant payments in real time, 24 hours a day, seven days a week,” the CBCG statement reads.
The system will improve the speed, security and efficiency of financial transactions, significantly reduce payment costs, and simplify the daily financial activities of citizens and businesses.
The CBCG added that the implementation of the signed agreement between the central banks of Italy and Montenegro will begin this month, with the system expected to be operational by June 2026.
Panetta stated that this achievement is the result of years of dedicated efforts, strong relations, and continuous technical cooperation between the central banks of the two countries. He emphasized that the Bank of Italy is ready to support the involved central banks in their efforts to modernize payment systems.
Radović noted that the implementation of the TIPS clone project contributes to further strengthening Montenegro’s integration into the European payment space, highlighting that it is a testament to the CBCG’s commitment to modernizing and digitizing the financial system.
“This project contributes to creating a modern and efficient payment system, aligned with European standards. We are providing citizens and businesses with simpler and more cost-effective payments, directly improving the quality of life and business in Montenegro,” Radović said.
The CBCG statement explained that the TIPS clone system will allow Montenegro to establish a modern instant payment system in line with European standards, preparing for a smooth transition to the original TIPS system once the country joins the European Union (EU).
“TIPS clone represents an additional step towards Montenegro’s integration into the European payment space, facilitating alignment with SEPA standards and easing the transition to the cross-border SEPA instant scheme,” the CBCG clarified.
This will create conditions for faster, safer, and more efficient cross-border payments, further strengthening Montenegro’s economic ties with EU countries and the region.
“The CBCG will also work on supplementary services for the instant payment system, such as QR codes, which enable quick and easy payments via mobile phones, as well as the ‘request to pay’ functionality,” the statement noted.
This functionality allows merchants and service providers to electronically send payment requests to customers, who can review and approve the transaction through a mobile app without manually entering data. These innovative solutions contribute to the modernization of the payment system, simplify payments, and reduce the risk of errors.
The signing of the Letter of Intent represents an important step in Montenegro’s path to joining the European financial space and the European System of Central Banks (ESCB).
