Non-cash transactions replace traditional money

July 13, 2017 There are almost 40 million payment cards in Poland. Every year, Poles pay less and less with traditional methods. Every fifth retail transaction is a non-cash payment. By introducing a cashless trading program, the state also contributes to the marginalization of cash. In turn, non-bank institutions are recording an increase in interest in online loans. 

Will traditional money be a thing of the past?

Will traditional money be a thing of the past?

The number of card payments has increased by one fifth in the last 7 years. Interestingly, more and more stores and businesses are deciding to use terminals. There are currently 37 million payment cards in Poland. For comparison, people who can set up a bank account (over 13 years old) are in the country on the Vistula River about 30 million.

Almost 93% – so many people use ATM cards. In turn, the number of cash withdrawals from ATMs decreased from 73% in 2009 to 64% in 2016. In 2016, 83% of Poles surveyed declared having at least one bank account 1. Unfortunately, some banks charge small fees for maintaining the account. A good way to compare bank account offers are bank rankings.

The state supports cashless payments

The state supports cashless payments

According to the Ministry of Development, over 20% of all retail financial transactions are non-cash payments. Interestingly, 10 years ago, this figure was only 2% MR believes that innovative forms of payment and rising wages have an impact on economic growth.

In order to strengthen the trends of modern payments, the Ministry of Development and the Ministry of Finance have created a cashless trading program. Project partners are Visa, Mastercard and the Polish Bank Association.
The main assumption of the project is to support companies that did not accept non-cash payments in their branches. Therefore, such entrepreneurs will be offered support in the form of a free terminal and coverage of transaction fees.

Over 90% of Poles pay via the Internet or an application

Over 90% of Poles pay via the Internet or an application

The number of banking branches is falling. According to the Polish Financial Supervision Authority, their number fell below 7,000. Compared to last year, over 425 branches have disappeared. This is the worst result in 5 years. Earlier, the closure of stationary units was caused by the global financial crisis.

However, today the main culprit is Internet financial services. Customers prefer to use online banking via a computer or smartphone. The Mastercard survey is clear – 35% of Poles visit their bank branch once a month. In turn, as much as 70% made a visit to the facility once in the last 12 months.

Modern road sign – the driver will pay for the ticket by card

Modern road sign - the driver will pay for the ticket by card

Until recently, the driver had to pay traffic tickets by a traditional bank transfer or postal order. At present, thanks to fintech solutions, it is possible to pay a ticket via the Internet, to an indicated bank account.

The Sejm adopted an amendment to the code of conduct in misdemeanor cases. Under the new regulations, the road will be equipped with payment terminals. Drivers, especially foreigners, will be able to pay by card for traffic offenses.

Why are cashless payments becoming more important?

Why are cashless payments becoming more important?

Due to technological development, consumer habits are changing. Only 30% of online transactions end with a cash on delivery payment. Interestingly 25%. Poles use online shopping at least once a month. However, 9% buy products on the internet every day 2.
Online payment operators play a major role in modern forms of payment. All you need is a bank account and an email account.

Banks themselves are also deterring customers from trading in cash. Financial institutions impose fees for the use of ATMs. What’s more, traditional transfers in a branch are also charged a relatively high fee.

Smartphone as a means of payment. How to pay by phone?

Smartphone as a means of payment. How to pay by phone?

Almost 70% of all bank customers have access to the BLIK application. What is BLIK? It is a 6-digit code that confirms the payment or withdrawal of cash from an ATM. For this type of transaction you need a cell phone and the bank’s mobile application.

Contrary to stereotypes, contactless phone payments are secure. To make a transaction, you must unlock your smartphone. What’s more, as in the case of contactless cards, purchases over PLN 50 should be confirmed with a code.

Loan card – a new proposal from the non-banking sector

Loan card - a new proposal from the non-banking sector

The non-bank loan market is booming. A relatively new product is a revolving loan. Pursuant to the limit granted, the customer can constantly maintain liquidity. At the moment there are two possibilities to take advantage of this type of loan. The first option is to log in to the lender’s website and withdraw money to your bank account.

In the second option, however, a payment card is offered. The thirteen card works on similar principles as a credit card. Therefore, it can be used as a means of payment for all kinds of purchases. Of course, the interest rate on such a card is slightly higher than for a banking product. However, people with low BIK scores can apply for this type of loan.

Online loans are a convenient form of borrowing

Online loans are a convenient form of borrowing

The lack of unnecessary formalities supports the offer of loan companies. The entire procedure from submitting the application to the payment of money takes place online. First select the loan amount and planned repayment period. Then the borrower must complete a simple form.

It is worth noting that many non-bank institutions grant loans in 15 minutes. Therefore, a potential customer can apply for payday pay being anywhere, e.g. in a store.

Most loan companies check the BIK status of a potential customer. However, you should be aware that your credit history is not as important as for banks. Therefore, people who have, for example, a mortgage can apply for online payday loans. The most important aspect for borrowers is the ability to repay their liabilities.

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