More and more people choose not to withdraw cash from their cards, as they did a few years ago, and opt for cashless payments. This shows that confidence in the banking system has grown among the population. Most of the cardholders are young people, people with higher incomes and who are from cities. The data were presented at a press club meeting organized by the Independent Think Tank “Expert-Grup” in partnership with the National Bank of Moldova, IPN reports.
Adrian Lupușor, executive director of “Expert-Grup”, said that in the 21st century, the economy has less and less cash, and transactions become more and more digitalized. “We all understand the risks of a cash-rich economy. As all developed countries tend towards the digitalization of the economy, including the transition to cashless payments, it is important to promote these aspects in the Republic of Moldova as well. Especially since we also have a high level of informality, and the transition to an economy with cashless payments is an important step to formalize the economic system. At the same time, we must understand that the transition to cashless payments should also involve particular education and understanding of how to take the opportunities without falling prey to multiple potential frauds,” noted Adrian Lupușor.
Stas Madan, program director, presented the data of a survey conducted by “Expert-Grup”. According to him, 68% of the population would have at least one payment account or bank card, and this fact shows that effort should be made to increase the inclusion of cashless payments. Nine out of ten cardholders noted that they also withdraw money from ATMs. Two out of three keep money on their account and make cashless payments. Also, every second person makes online payments in e-commerce. Many of those who do not have cards say that the main constraint is that they get their salary or income in cash. Respondents also mentioned the distrust in the financial system in general, either they do not trust banks or believe that money will be stolen from their card. Others cited the lack of necessary infrastructure – they simply have nowhere to use the card.
There are discrepancies in terms of age categories and place of residence. “Practically 60% of those from urban areas and only 40% of those from rural areas make payments online. The discrepancies are even greater in terms of age. 70% of those aged between 18 and 29 and only 23% of those from the 60+ category make online payments. According to September 2023 data, about 4 out of 10 people who possess a card use a banking app. We see that the banking application is mainly used by the young population, the population with higher incomes and the population from the urban areas,” explained Stat Madan.
Victor Susu, director of the Payment Systems Department of the National Bank of Moldova, said that today in Moldova the payment card is the most used instrument. NBM data show that at the end of 2023, there were 3.29 million cards in circulation – by 17.6% more than in 2022. So, every citizen of the country owns a payment card. However, it is obvious that a user can have two and three cards.
“However, this indicator has risen. In 2019, there were 2 million cards issued, while in 2023 there are 3.29 million payment cards. As for active cards – those by which at least one cashless payment transaction was made during a quarter, not ATM withdrawal – they represent 60%. It is also a pretty good indicator, even compared to other countries,” noted Victor Susu.
According to him, it is extremely important for the people to know about possible risks as well. An increasing number of criminals have recently persecuted cardholders by phone to give them their data. Subsequently, the money is withdrawn or transferred to other accounts. “The National Bank relies very much on financial education, as a result of which the citizens become aware of the measures that need to be taken not to admit such things. Do not provide to anyone the requisites or confidential card data. No one is entitled to request such confidential information referring to the card. In case there are such requests, immediately report, but do not communicate the data,” said the NBM official.
The press club meeting was held within the National Financial Education Campaign (Financial Education for All) which is conducted by the National Bank of Moldova and “Expert-Grup”, with the support of the USAID Moldova Project "Institutional and Structural Reforms in Moldova" and Moldova PRO Reforms.
