Serbia Joins SEPA: Financial Consultant Highlights Benefits for Economy and Citizens

Serbia's official accession to the Single Euro Payments Area (SEPA) marks a significant step towards financial integration with the European Union, promising substantial benefits for both businesses and citizens. Financial consultant Vladimir Vasić explained that this move will streamline cross-border transactions, reducing both the time and cost associated with transferring money to and from EU member states.

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If a company had a turnover of 10 billion euros with the EU, it previously paid only 50,000 euros for transfers. Within SEPA, that cost could be between 12,000 and 15,000 euros. When you import goods, the cost will not be passed on to the end customers.

For businesses, particularly those with high transaction volumes, the savings are considerable. Vasić cited an example where a company with a €10 billion turnover with the EU, previously paying €50,000 in transfer fees, could see this cost drop to between €12,000 and €15,000 under SEPA. This reduction in overhead is expected to translate into more competitive pricing for consumers, as import costs decrease.

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For most citizens, this doesn't have much impact because we still pay with payment cards when we go abroad. Rarely do we send money from our account to an account abroad. This applies more to transfers. Serbia receives about four billion annually from friends, relatives who send money to Serbia. But, when someone sends 100 euros, you get 75 or 80 euros. In this way, you will receive 97, 98 euros (via SEPA).

Citizens will also experience tangible benefits, especially those receiving remittances from abroad. Previously, sending €100 might result in the recipient getting only €75-€80 due to fees. With SEPA, the full amount, or nearly all of it (around €97-€98), will be received. This is particularly advantageous for individuals receiving foreign pensions or working for EU-based companies. However, Vasić cautioned that careful selection of banking partners is crucial, as fees can vary widely, with some banks offering substantial discounts of up to 85% compared to others.

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When you arrange a deal and ask for modalities for someone to pay you, try to be in the SEPA system first, give them your IBAN number to receive money faster in your account, and check which bank is the most favorable. There is a difference between banks - some banks charge highly for this, and some have lowered prices so the savings are up to 85%.

SEPA, established in the EU in 2008, aims to simplify and speed up payments within the zone. Serbia's inclusion signifies not only a practical advancement in financial services but also a symbolic move, placing the country closer to the EU's economic framework. As Vasić noted, this integration through payment systems is a valuable gain, complementing Serbia's existing strong trade and investment ties with the EU.

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SEPA is a unique payment system, it has existed in the EU since 2008. It enables faster and simpler payments within the EU. They realized that this scheme, i.e., system, could be extended to other countries that trade with the EU. We are getting something useful, besides the fact that they are our largest foreign trade partners and that most investments come from the EU, here we are now in the EU corridor, at least in this way, through payment systems.