Montenegro is preparing to introduce instant payments, giving citizens and businesses a faster and more secure way to complete payment transactions.
Under proposed amendments to the Law on Payment Transactions, the country would create the regulatory conditions needed to launch its national instant payment system, known as TIPS Clone. The system is expected to allow money to become available to recipients within just a few seconds, 24 hours a day, seven days a week.
According to the Central Bank of Montenegro, the banking sector has already completed the key infrastructure, technical and operational preparations required for the system to begin operating. The launch is planned for July 20, provided that lawmakers complete the legislative procedure and adopt the proposed amendments.
The introduction of TIPS Clone is part of Montenegro’s broader effort to modernize its payment system. It follows the country’s accession last year to the Single Euro Payments Area, which enabled citizens and companies to make international payments under rules used across the European Union.
One of the main changes proposed in the law is the introduction of instant credit transfers. Banks and other payment service providers that already offer standard credit transfers would also be required to provide instant transfers through the same electronic channels currently used by customers.
The draft law states that funds must be made available to the recipient no later than 10 seconds after the payment order is received. If the payer’s bank does not receive confirmation within that time that the transaction was successfully completed, it would have to immediately return the money to the customer.
The new rules also place strong emphasis on payment security. In line with European regulation, Montenegro plans to introduce mandatory Verification of Payee checks. Before confirming a payment, banks would have to verify whether the recipient’s name matches the IBAN entered in the payment order.
If there is a mismatch, users would be notified before the transaction is carried out. The measure is expected to reduce incorrect payments and fraud. The verification service would have to be free for users, while banks that fail to comply could face fines ranging from 10,000 to 40,000 euros.
Users would also be able to set their own maximum amount for instant transfers, while banks would not be allowed to charge more for instant payments than for regular credit transfers of the same type.
The Finance Ministry said the new system would bring the greatest benefits to citizens and businesses by making funds available almost immediately, regardless of the time of day or day of the week. The law is not expected to create additional costs for users or require extra funding from the state budget.
Banks and other payment service providers, however, will need to adapt their IT infrastructure in order to connect to the new system and implement the required security checks.
Officials expect the new framework to increase competition in Montenegro’s payment services market, attract new participants and speed up the digital transformation of the country’s financial sector.
