Market Research Report
Payments Landscape in Romania: Opportunities and Risks to 2021
|Published by||GlobalData||Product code||630776|
|Published||Content info||50 Pages
|Payments Landscape in Romania: Opportunities and Risks to 2021|
|Published: April 19, 2018||Content info: 50 Pages||
Cash remains the preferred method of payment in Romania, accounting for 87.2% of total payment transaction volume. While high-value transactions are shifting to electronic platforms, low-value transactions are mostly carried out with cash. But the government has taken steps to promote electronic payments, including the introduction of the cash-back law in 2017 to push merchants to accept card-based payments. Debit cards remain the dominant payment card type, and credit card usage is low in the country due to the debt-averse nature of Romanians and their low disposable income. To encourage credit card usage, banks offer value-added benefits such as zero interest on installments, cashback, and rewards. The gradual adoption of contactless technology and the the emergence of the e-commerce market - supported by the availability of alternative payment methods - is likely to drive the payment card market throughout the forecast period.
The government has taken steps to promote electronic payments in the country. In November 2016 it introduced the cash-back law, mandating merchants with annual business turnover of over €10,000 ($11,998.60) to accept debit and credit cards as a method of payment. This means merchants must install at least one POS terminal in each of their stores. The law also enables Romanians to withdraw a maximum of RON200 ($51.20) from POS terminals, against a commission fee of not more than 1% of the total amount. Meanwhile the law also mandates that public utility providers and public institutions must accept payments via cards, or risk a fine of RON20,000-50,000 ($5,122.35-12,805.88).
To remain on a par with its European peers, and to promote electronic payments in the country,Wirecard Romania collaborated with Spire Payments and ServuS Romania to undertake the mass rollout of contactless POS terminals across Romania - enabling 6,000 additional merchants to accept contactless POS payments. The majority of banks in Romania now offer contactless cards; most recently, in September 2017 CEC Bank started issuing Visa-branded contactless credit and debit cards.
Furthermore, Romania is adopting instant payments. In October 2017, payment technology provider Transfond announced that five major banks in Romania will start testing instant payments during 2018, with the service set to be operational by the end of 2018.
The report "Payments Landscape in Romania: Opportunities and Risks to 2021", provides top-level market analysis, information and insights into the Romanian cards and payments industry.
In depth, this report provides the following -
Companies mentioned in this report: Banca Transilvania, Societe Generale Group, Raiffeisen Bank, Erste Bank, CEC Bank, ING Bank, Eurobank, UniCredit Bank, OTP Bank, BNP Paribas, Credit Europe Bank, Mastercard, Visa, American Express