Cash set to lose payments crown in Portugal, GlobalData
Electronic payments are set to surpass cash in Portugal by 2020, according to GlobalData.
Its report reveals that the share of cash in total payment volume decreased from 57.6% in 2014 to 52% in 2018 and is expected to drop further to 48.4% by 2022.
Nikhil Reddy, Payments Analyst at GlobalData, comments: “The implementation of an instant payment system, cap on cash transactions and the push for digital banking are expected to help the country move towards a digital economy.”
In terms of the latter development, the central bank, Banco de Portugal, has enacted a regulation enabling financial institutions in the country to allow their customers to open bank accounts online. The likes of Novo Banco, Millennium BCP and Santander have now gone down this route.
Also, the government capped the amount of cash per transaction for residents and non-residents to €3,000 ($3,436.64) and €10,000 ($11,455.48), respectively in August 2017. It also mandated income tax payments over €1,000 (US$1,145.55) to be made through bank transfer, cheque or direct debit.