Representatives of the Ministry of Finance of Republika Srpska and the Federal Ministry of Trade signed Memoranda of Understanding with the partners of the project “Cashless Payment Initiative – Better Way” (Better Way 2.0), officially launching the implementation of an initiative aimed at advancing digital payments and financial inclusion in Bosnia and Herzegovina.
The Ministry of Finance and Treasury of Bosnia and Herzegovina expressed its full support for the initiative and its implementation.
The project partners are the Chamber of Commerce of Republika Srpska and the Sarajevo Regional Development Agency (SERDA). The project is implemented through the develoPPP programme of the German Federal Ministry for Economic Cooperation and Development (BMZ), with implementation support from GIZ and co-financing from Mastercard and Visa. The National Alliance for Local Economic Development (NALED) is an associate partner of the project.
The Memorandum with the Ministry of Finance of Republika Srpska was signed on 17 June in Banja Luka, while the Memorandum with the Federal Ministry of Trade was signed on 18 June in Sarajevo.
“The Better Way project in which we participate is fully aligned with the strategic priorities of the Government of Republika Srpska, as it focuses on promoting digitalisation and the development of cashless payments, combating the informal economy, strengthening financial literacy, and improving access to financial services for citizens and the business community. In line with its medium-term plans and strategic commitments, the Government of Republika Srpska has initiated the modernisation of payment services and payment systems, while a package of regulations governing modern payment methods and creating the regulatory foundations for the introduction of open banking is currently being adopted. Innovative payment services within the new payment environment will contribute to the efficient and secure execution of transactions and further support the economic and social prosperity of Republika Srpska,” said Zora Vidović, Minister of Finance of Republika Srpska.
“Within the project, up to 7,500 POS terminals are planned to be introduced for small and medium-sized enterprises across Bosnia and Herzegovina, which effectively represents an increase of approximately 40% in the total number of terminals. Our goal is to create conditions that enable micro, small, and medium-sized enterprises to more easily accept electronic payments, reduce operating costs, and become more competitive in both domestic and international markets. It is important to emphasise that this Memorandum does not create any financial obligations for the signatories; rather, it reflects a willingness and shared responsibility to implement activities of mutual interest for the Federation of Bosnia and Herzegovina through partnership,” said Amir Hasičević, Federal Minister of Trade.
The Better Way Initiative is a regional project focused on improving conditions for the development of cashless payments, strengthening financial literacy, and supporting the digital transformation of micro, small, and medium-sized enterprises.
Through the project, support is planned for the development of policies and institutional frameworks for electronic payments, the promotion of financial inclusion, education of businesses and citizens on the benefits of cashless payments, and the expansion of POS infrastructure in cooperation with banks, fintech companies, and technology partners.
Visa and Mastercard emphasise that Bosnia and Herzegovina has significant potential for the development of electronic payments and an accelerated transition towards a digital economy.
“Bosnia and Herzegovina currently has 10.6 POS terminals per 1,000 inhabitants, compared to 31.7 in the European Union. An analysis conducted by EY and Mastercard shows that electronic payments in Bosnia and Herzegovina significantly contribute to the country’s economic growth, generating EUR 454 million in GDP, supporting 21,300 jobs, and contributing EUR 163 million in tax revenues. Through the Better Way Initiative, together with our partners, we aim to contribute to the expansion of secure, simple, and accessible payment methods for citizens and businesses. Digital payments should therefore not be viewed solely as a technological issue but as an opportunity for further growth of payment infrastructure. Together, we plan to support the deployment of 7,500 POS terminals over the next three years, with a focus on small businesses, merchants, and public institutions, enabling them to reach more customers, offer safer and more innovative payment methods, and operate more competitively,” said Jelena Sretenović, Vice President and Country Manager of Mastercard for Bosnia and Herzegovina, Serbia, and Montenegro.
“According to the latest World Bank Global Findex Survey for 2025, only 62% of adults currently use digital payments. At the same time, a Visa survey conducted in March 2025 demonstrated a strong connection between digital payment acceptance and business growth, showing that 65% of businesses that introduced digital payments reported increased sales, while 67% expanded their customer base. Through the Better Way project, together with regulators and industry partners, we are working to raise awareness and support small and medium-sized enterprises in recognising the benefits of digital payments. Together with financial institutions, Visa delivers innovative solutions that contribute to greater financial inclusion and economic growth,” stated Branka Gačina, Senior Manager for Client Relationship Development at Visa Bosnia and Herzegovina.
A special focus of the initiative will be placed on increasing access to digital payment solutions for small businesses, particularly in smaller municipalities and rural areas.
“Digital payments make business operations easier, save time, and enhance competitiveness. Through the Better Way Initiative, GIZ, on behalf of the Government of the Federal Republic of Germany, supports businesses across Bosnia and Herzegovina, particularly in smaller communities and rural areas, in gaining easier access to modern digital payment solutions.
The initiative also promotes financial education, with a focus on responsible financial management, thereby contributing to more effective financial inclusion of small merchants and citizens. This initiative demonstrates how cooperation between public institutions, the private sector, and development partners can deliver tangible benefits for businesses and citizens,” said Daniel Bagwitz, Country Director of GIZ in Bosnia and Herzegovina.
The Better Way Initiative builds on the experience of the project of the same name implemented in Serbia between 2021 and 2025. Through the POS programme, nearly 10,000 small businesses introduced card, instant, and online payment options with subsidised support, while the volume of cashless transactions grew by approximately 20% annually on average. At the same time, the project contributed to greater financial inclusion, business digitalisation, and improvements to the regulatory framework, fostering a more transparent business environment.
In Bosnia and Herzegovina, project activities will focus on improving policies related to digital payments and financial inclusion, developing POS infrastructure in cooperation with financial institutions and partners, promoting secure digital financial solutions, and educating citizens and the business community about the benefits of electronic payments, financial literacy, and responsible financial management.
Promotion and public relations activities related to the initiative will be carried out by the implementing partners, the Chamber of Commerce of Republika Srpska and SERDA, in cooperation with the project partners.
“Through its long-standing work with small and micro enterprises, SERDA has recognised the need for stronger support in business digitalisation, which is one of the key prerequisites for growth, competitiveness, and sustainability. The Better Way Initiative offers small merchants an opportunity to introduce cashless payment solutions under favourable conditions, improve service quality, expand their customer base, and better respond to the demands of the modern market. We believe that this project will accelerate the digital transformation of small businesses, strengthen financial inclusion, and contribute to a more favourable business environment, thereby making a significant contribution to the development of the digital economy in Bosnia and Herzegovina,” stated Sanela Dževlan, Director of SERDA.
“The Better Way Initiative represents an important step towards modernising business operations and expanding digital payment methods, enabling businesses to operate more efficiently and compete more successfully in the market. The Chamber of Commerce of Republika Srpska strongly supports this initiative as it will contribute to the digital transformation of the economy, financial inclusion, and sustainable economic development of Republika Srpska and Bosnia and Herzegovina,” emphasised Goran Račić, President of the Chamber of Commerce of Republika Srpska.
The Cashless Payment Initiative – Better Way is planned to run until the end of 2028 and represents an important step towards modernising the payment system, strengthening the competitiveness of the digital economy, and improving the business environment in Bosnia and Herzegovina.
