Bosnia & Herzegovina’s Payment Rails & How They Work – CBBH Clearing, EFT & Card Systems

9 Min

August 26, 2025

The payment systems in Bosnia and Herzegovina (BiH) keep the country's finances steady. They make sure that money flows fast and easily through the economy. The Central Bank of Bosnia and Herzegovina (CBBH) is a key pillar of this system. It runs and manages payment rails that meet the criteria of both Europe and the United States. Since 2001, BiH has made a lot of progress in bringing its payment systems up to date. For instance, it gave out International Bank Account Numbers (IBAN) in 2007 and made systems that interact with SEPA. The CBBH now promises that its clearing and settlement systems will be up and running most of the time. This makes it easier and safer to do business.

The CBBH Clearing Systems and the Real-Time Gross Settlement (RTGS)

The CBBH Clearing System (Gyro Clearing) and the Real-Time Gross Settlement (RTGS) system are the two main interbanking systems that power Bosnia and Herzegovina's payment rails.

The Gyro Clearing System

The CBBH clearing system can handle both bilateral and multilateral settlements for deals worth up to 10,000.00 convertible marks (KM). Four times a day, operations take place. The system has been compliant with ISO 20022 and SEPA requirements since its 2019 upgrade. This has made it easier to operate with European markets and more efficient.

After clearing is done, the CBBH examines net debit positions utilising the RTGS. With terms that let parties put money into accounts that aren't enough within 15 minutes, settlements are rapid and definitive. Reserve accounts are utilised to keep things stable when they need to be. This method explains how the CBBH clearing system in Bosnia finds a compromise between safety, operational efficiency, and liquidity.

Real-Time Gross Settlement (RTGS)

The RTGS system can manage payments of more than 10,000.00 KM, although it can also accept lesser ones. Each payment is handled right away if there is enough money. There are a number of financial institutions involved because clearing agents, card operators, and commercial banks are all involved.

RTGS is open from 8:00 AM to 4:00 PM on weekdays, and the CBBH in Banja Luka has a backup system in case something goes wrong. RTGS ensures that banks have clear rules for letting people in and out, backup plans, and strong supervision. This happened in 2016.

Also read: Sweden’s Payment Rails & How They Work – Swish, Bankgirot & The Cashless Society

Use of Digital Banking and Electronic Funds Transfers (EFT) in Bosnia

As Bosnia and Herzegovina modernises its banking system, the use of electronic funds transfers is rising significantly. Bank transfers are still the most prevalent way to pay, although the country has recently started adopting instant payments. In January 2025, Bosnia and Herzegovina and Italy joined a regional attempt to set up a real-time instant payment system based on the Eurosystem's TIPS model. This is a huge step forward for EFT to become more popular in Bosnian banks.

Even with these advancements, BiH still lags behind many of its neighbours in Southeast Europe when it comes to employing technology. The difference means that Bosnian digital payments will have both good and bad things happen in the future.

Bosnia's Card Payment Systems

E-commerce and digital payments have made it easier to use cards in Bosnia during the past few years. Visa and Mastercard run the networks that connect debit cards, which are the most common means to shop online. More and more people, especially younger ones, are utilising credit cards.

The number of online payments made using cards in Bosnia and Herzegovina went up from 32.8% to 43.1% between April 2024 and April 2025. This shows that a lot of things grew. You can use UnionPay cards at roughly 2,000 establishments and several ATMs, although Apple Pay didn't come out until late 2024. The CBBH's yearly reports on Bosnian card payment systems offer strong data that indicates these patterns.

Different Ways to Pay and E-Wallets

More and more people are using cellphones, and they expect things to be easy. That's why e-wallets are growing more popular. PayPal is still the easiest way to send money across borders, while UniCredit Mobile Wallet and BamCard make it easier to transmit money within the country. Apple Pay just came to Bosnia, but Google Pay and Samsung Pay aren't there yet.

New models, such as Buy Now, Pay Later (BNPL), are steadily becoming available, mostly for online shopping. Cross-border payment systems like Rapyd Payments and cryptocurrency payment solutions like Plisio have made it easier for people and businesses to work together.

Also read: Greece’s Payment Rails & How They Work – SEPA, DIAS & Digital Wallet Expansion

Bosnia's problems with modernising payments

Bosnia's economy still depends a lot on cash, even if things have improved. Cash on delivery (COD) is still the most common way to shop online, making up 72.5% of all retail transactions. Customers know a lot about COD, but it makes it harder for stores to run their operations and obtain money. This dependency on cash shows how much people don't trust digital options and how ready the infrastructure is for them.

The harder part is getting more people in Bosnia to adopt online banking. SEPA alignment, rapid payments, and integration with European standards have set the stage for modernisation. However, how soon it happens will depend on how ready merchants are, how confident consumers are, and how much the infrastructure needs to be enhanced.

The Future of Bosnia's Payment Systems

In the future, Bosnia's payment system will probably steadily migrate towards digital solutions. Bosnia's financial system will be more like the EU's when it can make fast payments and use SEPA. Fintech-driven new ideas like cryptocurrency solutions, BNPL, and e-wallets will also give people additional choices. People are expected to stop using cash and instead use a mix of cards, e-wallets, and EFTs that is more evenly spread out.

To use Bosnia and Herzegovina's payment rails, multinational corporations and fintechs need technology that can develop, knowledge of the location, and an awareness of compliance. In this scenario, it might be a good idea to work with partners who know a lot about the subject. For example, TransFi includes cross-border payment systems that are good for places that are still growing, like the Western Balkans. TransFi helps businesses effortlessly expand into new regions by providing compliance-first solutions and safe, real-time settlement rails.

Conclusion

In the previous 20 years, Bosnia and Herzegovina's payment systems have improved a lot. The CBBH has built strong clearing and RTGS systems in the country that are stable, safe, and almost always available. People still mostly pay with cash in stores and online, but bank 

transfers, e-wallets, and cards are growing quickly, which demonstrates that things are changing. SEPA integration, fast payments, and new digital technologies that are on the way will all help Bosnia's digital payments grow in the future. These will provide new chances, make things work more smoothly, and bring Bosnia's financial markets closer to those in Europe.

FAQs:

1. What does Bosnia's CBBH clearing system do?

It settles net debit and credit positions through the Central Bank and conducts interbank transactions of up to 10,000 KM in four daily cycles to make sure that final, irreversible settlements occur.

2. What is the main purpose of Bosnia's RTGS system?

The RTGS system lets banks, clearing agencies, and other players settle transactions right away. It is used for transactions that are valued more than 10,000 KM.

3. Do many Bosnians use electronic money transfers?

A lot of people utilise EFTs, but not as many as in other Southeast European nations. Because of quick payment mechanisms, most transfers are now done through banks.

4. How do cards operate in Bosnia's payment system?

Most people pay online with cards, such as Visa and Mastercard. They are also progressively gaining market share. More and more individuals are using credit cards, especially younger people. But debit cards are still highly popular.

5. What are the last problems that Bosnia has to deal with before it may use digital payments?

The biggest problem is that cash is still the most popular way to pay, especially for e-commerce, where you pay when you get the item. Infrastructure upgrades, merchants being ready, and consumers trusting digital payments will all be very important to the move.

TransFi Team

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