More businesses, households using POS systems

TIRANA, May 21 – More Albanian businesses and households are using point-of-sale (POS) payments such as debit and credit cards and e-money, according to a study carried out by the country’s central bank.
The size of businesses and revenue they generate are the key factors in the use of e-payment instruments in Albania. Data shows big businesses with more than 80 employees and those with a higher daily turnover used payment instruments more than other categories of businesses.
Credit transfer accounted for 40 percent of payment instruments, direct debit for 25 percent followed by cheques with 14 percent and e-banking with 13 percent among businesses. Some 400 businesses and 200 households in the Tirana-Durres area were interviewed in the survey.
Businesses accepting payments through POSs said they appreciated their level of security, reliability and didn’t worry about costs while those who do accept such payments said they would adopt these methods if more customers would demand the service and only if POS costs reduced. More than 40 percent of businesses estimate the number of buyers using the systems and their reliability as very important.
Lack of information is a barrier both for businesses and households in using payment instruments. Power cuts were also identified as an issue in using e-payments.
The study found a considerable rise in the number of households using bank payment instruments. Individuals said they mostly used their bank accounts to get their salaries, pay loan installments, receive remittances, and pay electricity and phone bills. Some 88 percent of the surveyed people said they mostly used debit cards, direct debit rather than credit cards, credit transfer, cheques and e-banking. Only 16.5 percent of the surveyed people said they possessed credit cards.
The study identified lack of knowledge and transparency over the commissions charged for the payments.
M-tax and E-payment are the newest services the Albanian tax administration has introduced to facilitate the payment of taxes, which ranks Albania among the last in the region.
Despite the number of credit and debit cards in circulation increasing, the Albanian economy remains overwhelmingly cash based when it comes to payments. Data from the latest Bank of Albania annual report show an overwhelming majority of 93.5 percent of total transactions are ATM withdrawals with card payments accounting for only 6.5 percent, registering a slight 1.5 percent improvement compared to 5 percent at the end of 2010. Card payments at POS terminals unveil predominantly debit card transactions.
According to banks’ reporting, debit cards accounted for 95% to total cards in circulation at end-2011, from 96% at end- 2010.