Buying by phone or card has become the norm in Europe, but in Albania physical money continues to rule. The World Bank notes that only 40 to 45% of Albanians with bank accounts carry out digital payments. Over 75% of digital transactions are conducted by the 1855-year-old age group, while the use of cards or Mobile Banking remains at minimum levels below 15%.
The main causes relate to the inherited consumer habit, lack of financial education and low access to technology in rural areas. On the other hand, the small merchants act to stimulate the failure to actually ignore taxes, which makes POS terminals often lacking, Besarta Tafaj, finance expert, confirmed.
In August, cash outside banks reached the record 534 billion dollars, with an annual increase of 15.2%. Keeping money in hand is often considered cost-free, but on a macroeconomic scale it is an illusion.
Preservation has massive costs hidden for the system, from armoured transport and maintenance of the banknotes to their security. An information campaign is urgently needed that digital roads are faster and safer, and that the moderate economy lowers the cost of doing business, Tafay said it.
The Bank of Albania aims to use cash payments to reach 60% by 2030. But beyond the institutional reforms of SEPA, the real challenge remains to change the strong habit of Albanians to affect physical money. / Tv Klan