Eastern European countries record double digit growth in card numbers to 2010

April 20, 2011 - PRLog -- There is little doubt that Central and Eastern Europe and Central Asia represent some of the world’s growth hotspots for credit and debit cards.

In spite of a moderate slowdown in 2009 as a result of the financial crisis, many countries of the region are recording double digit growth rates in card numbers. Not surprisingly, given the region’s historical reliance on cash and domestic ATM cards, cash withdrawals using debit cards remain the primary use for card transactions according to new research for the Eurasia Payments Report 2011 by independent research house Eurasia Insights.

And numbers of ATM and POS machines are also continuing to rise significantly in a clear sign that the region as a whole is continuing to embrace electronic payments with enthusiasm.

In spite of the advances of recent years however, there is little evidence of an integrated payments strategy formed of a compact between the industry and regional governments or regulators. With the cost of a nation’s payments infrastructure representing anywhere between 2 and 3 per cent of the national GDP, the advantages of encouraging the population to make payments using more efficient, electronic means is clear.

In Turkey, something of a payment industry benchmark for the region, discussions were started between regulators and the industry to move toward this but progress appears to have foundered on suspicion of the industry’s motives.

This is certainly a missed opportunity. And if the region is to continue to develop, an integrated payments strategy has to be a central component of its development plan. In Norway, as a result of an industry decision to offer preferential pricing for electronic payments, debit card transactions rose 25 per cent a year over 15 years. Similarly, a scheme in South Korea that offered lower VAT rates for customers paying with cards saw the proportion of cash payments drop from 40 to 25 per cent over just 4 years.

With many countries of the region ready to lead the world in the adoption of mobile payment technologies and a young, increasingly sophisticated population, is it too much to ask for the region’s regulators and industry leaders to design and implement a policy that will lead the region towards a cashless society?

Eastern Europe payments strategy: More cards but still a lot of cash too
Eurasia Insights is launching the first Eurasia Payments Report 2011, a unique study of 19 major payments markets across Eastern Europe, Russia and the countries of the former Soviet Union. The Report combines latest available statistical analysis with insights from regional industry leaders and payment market trends.

Eurasia Insights provides research and analysis to the financial services industry across Eastern Europe and Central Asia including analyst reports, consultancy and industry surveys.

For further details including full contents list and sample pages,
visit http://eurasiainsights.com/eurasiapaymentsreport.html

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About Eurasia Insights
Eurasia Insights provides research and analysis to the financial services industry across Eastern Europe and Central Asia including analyst reports, consultancy and industry surveys.