Cash payments "outrun credit card transactions"
Financiers claim that payment in cash is hiding in Romania a rate of over 40 percent of the underground economy. The value of card transactions increased continuously but "is under the cash payments."
Articol de Adrian Cristea, 28 Martie 2012, 20:44
17 billions of lei were the card payments made last year in Romania - National Bank of Romania show the data.
While the number of card payments increased significantly in recent years, Romanians still prefer cash payment - say experts in the field, present at a specialized forum.
500 ATMs and 6,000 POS per million inhabitants are the main coordinates of the card market in Romania, according to statistics for 2011 of the National Bank.
In the same year, one million Bulgarians have access to 700 ATMs and 9,000 points in the Czech Republic were accepted for payment by card.
Last year were recorded - also shows figures National Bank - six card payments, worth about 230 euros per inhabitant.
Moreover, in Romania exists in 2011 about one card every two people, while, statistically, every Bulgarian had a credit card.
Credit card, "good for economy '
The head of the Financial Stability within the National Bank of Romania, Ruxandra Avram, thinks that card payments can contribute to the economy.
"We have a problem and the issue is known, we are a country that still go on cash. It wouldn’t be necessarily the only issue, the biggest problem is that it hides the gray economy and hiding in an overwhelming proportion going somewhere to 40 percent.”
"Without a banked population, at some point the development will stop, will stay somewhere where it is now."
Banking sector representatives agree that the underground economy can be reduced by developing the cards.
Catalin Creţu, the representative of an institution providing payment solutions, believes that authorities should be more involved in encouraging the card payments.
"In Bulgaria there is a law: no more than 1,500 Euros payment is not made in cash. What signal sent this law?
"If you want to pay over 1,500 Euros valid, you have access to electronic payments and make it into a civilized manner, transparent, without doubt."
Experts say that the underground economy exceeds 30 percent of raw national product and encouraging card market would bring more money to the state budget.
Translated by Ioana Vioreanu
MTTLC, Bucharest University
