Challenges and Opportunities of Implementing Digital Payment Systems in Southeast European Countries

Abstract Digital transformation significantly impacts all aspects of the economic system, particularly the functioning of monetary policy and the financial sector. As a key process in modernization, digital transformation encompasses innovations that enable faster, safer and more efficient financial transactions, contributing to greater transparency and better economic integration. This paper analyzes the impact of digital transformation on the monetary policies of Southeast European (SEE) countries, with a particular focus on the development and implementation of digital payment systems. The aim of the research is to examine the potential of digital technologies to improve the monetary policies of these countries, enabling them to achieve greater financial stability and alignment with European Union (EU) standards. The focus is on identifying the benefits of implementing digital payments, including reducing transaction costs, improving trust in monetary institutions, and increasing the transparency of financial flows. The methodological framework of the research is based on multi-criteria decision-making (MCDM), using the CRITIC and MARCOS methods. The CRITIC method was used to evaluate the importance of individual criteria relevant to digital payments, while the MARCOS method enabled the ranking of countries based on their potential for implementing digital payments. The results of the research show that alignment with EU legislation is the most important factor, while Romania has the best potential for implementing digital payments among the observed countries. The contribution of this paper is reflected in the development of a strategic framework and the encouragement of regional cooperation, through which SEE countries could realize the full potential of digital transformation to accelerate economic growth and integration with the EU.