Even though Moldovans get 43% of their incomes on bank cards, they still overwhelmingly prefer cash transactions, which account for 94% of the total value of purchases, finds economist Veaceslav Ioniță of the think-tank IDIS Viitorul.

Most incomes on cards (total 51.9 billion lei) are salaries, pensions and social benefit payments, meaning the authorities have done a good job shifting to non-cash payments. Most incomes in cash (68.1 billion lei) come from foreign currency conversions, sales of agricultural goods and other individual entrepreneur activities, and to a lesser extent from salaries.

While incomes on bank cards have increased significantly compared with 10 or 15 years ago, Ioniță notes that cards haven’t become popular yet and ATMs rather replaced cashiers as points of dispensing money. In 2018, as much as 86,5% of the money received on cards was withdrawn from ATMs for subsequent cash transactions. Only 6.2%, or 7 billion lei worth of goods and services were paid for with cards.

Still, card transaction amounts double each year and if the pace is continued, they could account for a quarter of all transactions in five years, provided that the Government and the central bank continue to encourage card use.

To facilitate this, the economist says the priorities should include the creation of a National Payment System and improved regulation of bank fees and commissions.