Greek consumers are also turning more and more away from cash in the way they carry out their daily transactions both in person and online, according to convergent estimates and studies that are seeing the light of day. Contributing in this way to addressing an important issue linked to the fight against tax evasion.

Over time and especially after the pandemic, payment methods have changed. Apart from the fact that now most things are done digitally, new payment methods have been introduced in the market. According to a recent survey by Focus Bari entitled “The payment methods preferred by Greeks” conducted in May 2023, the debit card is now at the top of consumers’ preferences to pay for their purchases.

In particular, Greek consumers systematically prefer, on average, to pay for their purchases in the following ways: Debit card from a Greek bank (plastic) 48%, cash/cash on delivery 40%, electronic transfer (e-banking / m-banking) 30 %, credit card from a Greek bank (plastic) 17%, debit card from a Greek bank on mobile (digital) 16%, Digital wallets (Google Pay, Apple Pay, etc.) 15%, credit card from a Greek bank on mobile (digital ) 6%, prepaid card (plastic or digital) 6%, Revolut card (plastic or digital) 5%, Payzy by Cosmote 2%, N26 card (plastic or digital) 1% and with the Buy Now Pay Later (BNPL) method , such as e.g. Klarna 1%

According, moreover, to data presented during the 10th Digital Banking Forum by Antigonos Papadopoulos CEO of Cardlink the value of card transactions increased in 2022 by 21% while the number of transactions by 19% compared to 2021 with double-digit growth rates continuing in 2023. In 2022 the value of transactions made with use of cards reached 54 billion euros (+21%), while also during the first quarter of 2023 the increase was maintained at high levels at a rate of 15%. Accordingly, the number of card transactions reached 1.8 billion in 2022 (+19%), while in the first quarter of 2023 the increase is of the order of 17%.

Card transactions for amounts below 2 euros

The increase in 2022 also comes from foreign cards as the recovery of tourism gives a significant boost. In particular, the value of transactions with foreign cards reached 9.3 billion euros (+44%), while the value of Greek bank cards reached 44.7 billion euros (+17%). Regarding the number of transactions, with foreign cards they reached 144 million (+39%), while with Greek cards they reached 1.6 billion (+17%).

Of particular interest is that 7.5% of all card transactions are for purchases under 2 euros, with 42% of the number of transactions involving purchases under 10 euros. A fact that confirms that the way of our daily transactions has definitively turned the page

The total value of domestic transactions with Greek cards exceeded the value of cash withdrawals for the first time in 2022

On the same wavelength in his study IOVE on the effect of the pandemic on the strengthening of the use of payment cards that the use of cards has systematically expanded after 2015, following the imposition of capital restrictions, measures to promote electronic payments and the pandemic crisis.

In particular, the cumulative increase in usage in the period 2015-2022 exceeds 12 times in terms of the number of transactions and 5 times in terms of the value of transactions. The total value of domestic transactions with Greek cards exceeded the value of cash withdrawals for the first time in 2022, while card use is expanding to lower value transactions.

The relative boost to card use post-pandemic is still estimated, according to IOBE, to be greatest for online purchases, especially through credit cards, where the number of transactions was expanding 59.3% faster than retail activity in 2022, up from 44.8% in 2019.

Despite convergence with the European average, the level of card use in relation to private consumption in Greece remains the 18th lowest among the 27 EU members, as card use remains proportionally low in certain sectors such as services.

Why it is crucial to further strengthen online payments

As IOBE points out, the higher use of electronic payments is associated with a lower “VAT gap” across Europe. Despite the recent improvement, Greece has one of the highest “VAT gaps” in the EU.

As there is still considerable room to enhance tax compliance through increased card usage, the study recommends further policy measures that encourage the spread of electronic payments. Indicative, complementary measures in this direction are the direct return to the consumer of a percentage of the value of targeted online purchases, the extension of the mechanism of incentives and disincentives for electronic payments (B2C and B2B) on the professional side, as well as regulatory interventions framework, such as extending the application of mandatory acceptance of electronic payments to all professionals.

The statement of the general manager of the IOBE professor is also typical Nikos Vetta in the middle of 2018 in a presentation of the corresponding study by IOBE that if Greece converged with the average card usage in the EU, the revenues from VAT would increase by 20%, i.e. they would flow into the coffers of the state about 3.3 billion. euros on an annual basis. Based on the rise in card use observed from then until now, with the mediation of the pandemic, according to convergent estimates a significant part of the 3.3 billion euros has managed to enter the state coffers. Something that is also confirmed by recent data showing a better performance of VAT revenue in recent months.

Payment methods and DIAS Interbank Systems

Stavroula Kambouridou, Managing Director of DIAS SA, recently mentioned the prospect of intensifying the dynamics of the technological solutions and payment services that it develops and makes available in the domestic market and through Interbank Systems (DIAS) SA. Specifically, Ms. Kambouridou addressed an open invitation to acquirers, the companies that process card payments on behalf of merchants, inviting them to network and in cooperation with DIAS member banks to offer additional electronic payment methods to the market.

He also highlighted the company’s interest in further developing Account-to-Account (A2A) payments in retail, which represent 18% of the value of e-commerce transactions in Europe.

In Greece, which is still in its infancy, this percentage is less than 1%, a fact, however, which suggests that there is significant room for growth in the future. In fact, she invited the acquirers to cooperate with DIAS, connecting, in collaboration with the banks, to the Payment System, in order to offer the merchants-customers the additional payment methods, through the integration of interbank solutions. “The moment is right to give Greece the A2A solution as a commonly accepted alternative means of payment for merchants. The ultimate goal is to limit the use of cash at the physical point, which in turn will bring significant benefits, such as e.g. the strengthening of tax revenues, the rationalization of the cost of payments, the strengthening of security and innovation, etc.

DIAS is a hub connecting the payments of the entire financial system, has a national solution, expresses its willingness to cooperate and wishes to show a similar interest on the part of companies that process card payments on behalf of a merchant, for the benefit of all involved parts.

Sharp upward figures overall for DIAS SA during the last three years

As mentioned by Stavroula Kambouridou in the last two years, the landscape of payments in our country has completely changed, with the entry of international PayTech companies, the emergence of domestic companies that in turn developed a series of in-house solutions and the intense investment interest, coming from abroad with the corresponding partnerships .

In this landscape, DIAS moved with substantial results, especially regarding IRIS Person to Person (P2P), as it managed to multiply x30 times the number of five-month transactions (January-May) in the period 2020-2023 (from 200,000 in 2020 to approximately 6 million transactions this year). In the same product, users from 700,000 in 2021, today amount to 1.7 million, with the number of new user registrations now remaining constant at 60,000 on a monthly basis and aiming to exceed 2 million users by the end of 2023.