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Are instant payments coming to Croatia?

15/11/2018

When talking about money, especially in the context of whether or not Croatia really needs a form of ‘cryptojuna’, the example of Sweden was pointed out. Due to the high level of digital payments and the development of practices where retailers and banks have begun refusing paper money, Sweden decided to introduce a digital Krona.

Croatia will not take the same path as Sweden and simply introduce digital currency, but it will have an instant payment system from December onwards, not only in euros but in Croatian kuna. This was announced at the BUG F2 Future of Fintech conference held in Zagreb by the executive director of CNB/HNB (Croatian National Bank)’s payment sector, Ivan Bilus.

The new system will most help banks to carry out business with their fintech players, especially Apple, Amazon, Facebook, Google and Microsoft. It will also affect the strength of their relationships with card holders who see the ability to make fast payments anywhere as perhaps the most important things. Bilus noted that the system, which would have the support of the CNB TIPS payment system, will be launched alongside that of the European Central Bank on the 30th of November 2018.

“As of January 2019, we’ll not only have European instant payments in Croatia which are based on the euro, but also Croatian ones (based on the kuna), which will enable the instant transfer of the kuna” says Bilus. He said that banks in Croatia could negotiate the terms of the new servioce with the CNB/HNB by December, but also stressed that he didn’t expect the first commercial example of the service to actually be on the market before January next year.

TIPS will enable banks to offer services that are already on offer in the United States and in the United Kingdom, where customers can quickly transfer money from their bank account using IBAN to a foreign IBAN account.

Some of the most well known applications which will use fast pay include PayPal, Venmo, Square Cash and Zelle, but also Google Wallet and Facebook Messenger. Despite the country’s desire for a digital Croatia, these apps are not yet available with such a payment function in the Croatian market.

 

Author: Kate Nelson