Modern Financial Services Increasingly Popular Among Residents of Republika Srpska

The electronic money market in Republika Srpska is becoming increasingly developed, as evidenced by more than 79,290 users and a total transaction value of KM 51.5 million. Providers of these services are announcing new opportunities for users, an expanded network, and stronger integration of digital wallets into citizens’ everyday payments.

The Republika Srpska Banking Agency points out that four licences for the issuance of electronic money have been granted so far, confirming that this market is still developing and that there is interest in introducing new and modern financial services. According to the data, as of 30 June this year, more than 79,290 electronic money users were registered in Republika Srpska, while the value of transactions exceeded KM 51.5 million.

The Agency expects that further digitalisation of financial services, the development of electronic payments, and changes in the habits of citizens and businesses will further increase both the number of users and the volume of transactions. At the same time, it emphasises that the priority is not simply to increase the number of operators, but to ensure stable, controlled and secure market development, while meeting high regulatory standards and maintaining continuous supervision, reports Glas Srpske.

The companies currently licensed to issue electronic money in Republika Srpska are Mikrofin, m:tel, Digital Money Transfer and Aircash AC.

Boris Majstorović, director of Digital Money Transfer, says that simplicity is the greatest advantage of electronic money, as it enables users to carry out a wide range of everyday financial activities via their mobile phones.

“Through the Lova digital wallet, users can perform practically all of their most common financial activities using a mobile phone, from transferring money to other users and paying bills and various services to making payments at merchants. Our goal is not to view electronic money as a replacement for banks, but as a more modern and simpler way of making everyday payments,” Majstorović said.

Digital Money Transfer was founded in September 2021 and has been present on the market since 2022, when the Lova app was launched. The company’s plan is to have more than 50,000 users by the end of the year.

Lova is particularly counting on the introduction of a Visa card that will be directly linked to the digital wallet, as well as on expanding its range of services.

“We want Lova to become a true financial super-app, a place where users can carry out almost all of their everyday financial and payment activities. This includes purchasing vouchers and top-ups, paying for parking, buying vignettes and paying tolls, sending money, purchasing eSIM packages and insurance, accessing quick cash loans from our partners, paying utility bills, as well as making supplier payments for companies,” Majstorović said.

In the meantime, Lova’s offering has also been expanded to include the purchase, sale and storage of cryptocurrencies. The company is seeking to bring as many digital financial services as possible together within a single app, while it also sees significant room for growth in payments at domestic merchants.

A strong increase in the number of users has also been recorded by Aircash AC. According to director Lana Cvetanovska, the company currently has more than 43,000 users.

“Aircash has experienced exponential growth in new users from the very beginning. In the coming months, we expect this growth trend to continue,” Cvetanovska said.

She highlights as one of the key advantages the fact that a traditional bank account is not required to use Aircash. Users can add money using a card or cash and then use it through the app and a Mastercard card.

“Users can monitor at any time how much money they have and how much they spend, track transactions in real time, set limits, and instantly block or unblock their card through the app. That is why we see Aircash as a complement to traditional banking,” Cvetanovska said.

For users in Bosnia and Herzegovina, the ability to use their money abroad is also important, as the wallet is linked to a Mastercard card that enables payments in shops and online around the world.

“Another particular benefit for users in Bosnia and Herzegovina is the ability to receive money quickly from abroad. From the very beginning, our goal has been for Aircash to be more than just a local electronic money service — we want it to be a digital wallet connecting everyday payments in Bosnia and Herzegovina with international payments and money transfers,” Cvetanovska said.

Although the most active users of both digital wallets are generally between 18 and 45 years old, company representatives believe there is also significant potential among older citizens. For this group, they say, ease of use, education and gradually building trust in digital payment methods will be key.

Benefits
Digital Money Transfer is preparing a payment application that would enable merchants to accept Lova electronic money via QR code. Boris Majstorović says that the greatest benefit for merchants could be a reduction in costs.

“In addition to the costs of accepting payment cards, there are also costs associated with handling cash, including handling, counting, transporting and depositing money, as well as other operational activities. Accepting electronic money could significantly reduce some of these costs,” Majstorović said.

He added that Lova already has more than 4,500 POS terminals for topping up wallets across Republika Srpska, while cash withdrawals are available at around 300 locations. In cooperation with Nova Banka, withdrawals are also available through the bank’s ATMs.