Card payments increased by 36% for the first half of the year

2024-08-21 10:42:00, Ekonomi CNA

Card payments are growing rapidly this year as well.

According to data from the Bank of Albania, in the first six months of the year, a total of about 8.85 million card payments were registered at electronic point of sale (POS) terminals. The number of card payments increased by 36% compared to the first six months of last year.

Meanwhile, the total value of card payments for six months has reached ALL 37 billion, with an increase of 41% compared to the same period last year. Considering that the July-August tourist peak periods are accompanied by an increase in card payments, it is expected that the value of payments for the second half of the year will be higher.

The increase in the number of foreign tourists in recent years is one of the main factors affecting the rapid growth of bank card payments in Albania.

However, in addition to the significant impact of tourism, it is estimated that the use of card payments by residents is also increasing in recent years, especially after the pandemic period.

The increase in market demand for card payments is also accompanied by the expansion of the base of businesses that accept such payments, and it is believed that the tourism sector has given a significant boost to these payments.

According to data from the Bank of Albania, the number of POS terminals for accepting card payments in the middle of this year reached 21,775, further increasing by 23% compared to the middle of last year.

The increase in card payments is a positive signal in terms of reducing the use of physical money in the economy. Albania is a country with a high level of cash usage, a phenomenon related to a still insufficient financial inclusion, but also to the considerable level of informality and fiscal evasion.

According to data from the Bank of Albania, in mid-2024 the number of active bank cards reached 1.48 million, an increase of almost 6% compared to the previous year.

The number of debit cards reached 1.29 million, up 7% compared to a year ago. This product remains dominant and accounts for approximately 87% of the total number of bank cards. The debit card is a basic payment instrument, linked to the current accounts of businesses and individuals.

Meanwhile, credit cards have returned to growth in the last two years. In the middle of this year, the number of active credit cards in the banking sector reached almost 121 thousand, with an increase of 4% compared to the previous year. Unlike debit cards, which to a large extent continue to be used to withdraw cash from accounts, credit cards are a product mainly dedicated to non-cash payments./ Monitor.al