The number of card payments exceeds ATM cash withdrawals for the first time

2025-08-26 08:00:00, Ekonomi CNA

Card payments are experiencing rapid growth this year, and for the first time they have surpassed ATM cash withdrawals.

According to data from the Bank of Albania, in the first six months of the year, a total of about 12.57 million card payments were registered at electronic point-of-sale (POS) terminals. The number of card payments has increased by 42% compared to the first six months of last year.

For every 100 transactions performed with payment cards (excluding electronic money transactions), approximately 52 of them were payments at POS terminals, while the remainder were cash withdrawals or deposits.

Meanwhile, the total value of card payments for six months reached 48.3 billion lek, an increase of 11% compared to the same period last year.

Measured in monetary value, card payments accounted for 17.4% of total card transactions, up from 16.3% last year.

Given that the peak tourist periods of July-August are accompanied by an increase in card payments, it is expected that the value of payments for the second half of the year will be higher.

The increase in the number of foreign tourists in recent years is among the main factors influencing the rapid growth of bank card payments in Albania.

However, in addition to the significant impact of tourism, it is estimated that the use of card payments by residents has also been increasing in recent years, especially after the pandemic period.

The increase in market demand for card payments is also accompanied by an expansion of the base of businesses that accept such payments, and it is believed that the tourism sector has given a significant boost to these payments.

According to data from the Bank of Albania, the number of POS terminals accepting card payments in the middle of this year reached 27,969, further increasing by 28.4% compared to the middle of last year.

One of the major global card payment operators, Mastercard, is this year supporting the expansion of card payments with a program to add POS devices with favorable terms for businesses.

The increase in card payments is a positive signal towards reducing the use of physical money in the economy. Albania is a country with a high level of cash use, a phenomenon linked to a still insufficient financial inclusion, but also to the considerable level of informality and tax evasion.

According to data from the Bank of Albania, in mid-2024 the number of active cards reached 1.57 million, up 6% compared to a year earlier./ Monitor