Which is the starting point for the introduction of the new card market regulations approved by the government?
At the end of 2013, Romanian banks reached a portfolio of 11.3 million credit and debit cards, through which owners carried out deals worth 143 billion lei (EUR32 billion), according to central bank data.
The volume of payments by card at the POS installed by banks at retailers in 2013 more than doubled against 2008, topping RON26 billion (EUR6 billion). By comparison, in 2008 payments by card at retailers stood around RON12 billion. Against the previous year, the increase was of 15% in 2013.
Sums withdrawn from cards at ATMs have posted slower growth, by almost 50% in the past five years and 8% last year, but cash withdrawals still dominate deals by card, with an over 80% weight. In 2013, around RON117 billion (EUR26 billion) were withdrawn from the 11 million active cards.
The Finance Ministry wants to increase cash circulating on banking electronic channels, allowing thus for a reduction of payments evading taxation.
Most clients still prefer to withdraw all the cash from the debit card on salary days, so that very little money is left for payments by card at retailers. Only credit cards have come to be mainly used for payments at retailers.
Market specialists say there is still an insufficient number of POS installed at retailers.
Payments by card are likely to be spurred by a government initiative meant to cap deals by cash inclusively in the case of individuals. The government plans to also push for a cut in interchange fees, to a maximum of 0.2% in the case of debit cards and 0.3% in the deal value in the case of credit cards.
The average value of a payment at a local POS revolves around RON130, constantly down in recent years, showing that Romanians have started to use cards more often for small-value daily payments.
The number of cash withdrawal deals stood at 220 million last year, with the average value of a deal topping RON500.
At the end of 2013, domestic banks had a network of 10,772 ATMs, 81 units less than at the end of the previous year. The ATM network has dwindled on the diminishing network of subsidiaries and branches as weak loan sales prompted bankers to boost activity efficiency.
The total number of valid cards at the end of 2013 stood at 14.1 million units, of which 2.2 million units were credit cards.
Internet deals by card revolve around one billion euros annually, according to Visa estimates. However, two thirds of sums spent online are for shopping abroad. Domestic deals are still very low on the lack of confidence in certain online stores or certain payment platforms. At the same time, fraud fears are still high.
(English version by Catalina Apostoiu)