WASHINGTON, July 28, 2025 - The World Bank's Board of Executive Directors approved today a EUR 8 million loan to Montenegro to help modernize the country's digital payments infrastructure, expand access to digital financial services for businesses and consumers, and lower the costs of domestic and international transactions.
The Montenegro Financial Infrastructure Modernization and its Alignment with Single Euro Payments Area (SEPA) Standards Project (TIPS Clone Project), will support the introduction of fast or near-instant digital transactions, making financial services more accessible and widely available.
By modernizing the payments infrastructure and helping reduce transaction costs in an economy heavily reliant on international monetary inflows, this project expects to increase digital payment usage in Montenegro by a third before 2030, with an aim to reach an additional 110,000 people, 70,000 of them women.
Efforts will also specifically target the estimated 15% of the population who remain unbanked, meaning those who live outside the formal financial system without transaction accounts and digital payment instruments-leaving them more financially vulnerable to theft and loss and limiting their ability to access credit.
"Modern payment systems can greatly facilitate economic growth in Montenegro, enhancing the competitiveness of Montenegrin businesses," said Xiaoqing Yu, World Bank Division Director for the Western Balkans. "Advancing fast payment systems is not only a technical upgrade, but also a step toward deeper regional economic integration of the Western Balkans."
The project will help Montenegro adopt the Target Instant Payment Settlement (TIPS) clone solution developed by Banca d'Italia with the support of the Eurosystem, ensuring compatibility with pan-European fast payment systems and accelerating the country's financial integration with the European Union.
The initiative is part of the World Bank's broader efforts to support financial sector modernization in the Western Balkans and is aligned with Montenegro's 2025-2029 Country Partnership Framework, which prioritizes competitiveness, regional cooperation, and sustainable growth.
