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Lithuania: Increase in Non-Cash Payments

Published: March 29, 2013; 14:17 · (Vindobona)

Significant increase in non-cash payments creates a premise for banks to review their fees

Lithuania: Increase in Non-Cash Payments / Picture: © Flickr

The number of the most popular non-cash payments in Lithuania—electronic credit transfers and payment cards—increased significantly in 2012. Such progress creates a premise for banks to review their applicable fees.

“With the increase of non-cash transactions, the expenditure of the banks decreases, because cash handling is relatively expensive. This creates possibilities to minimize fees for clients and this way promote the use of cheaper, more up-to-date payment methods for both the banks and their customers,” said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania.

The number of electronically-initiated transfers over the year increased by 15.5 per cent—to 101 million. Their part out of all transfers grew by 3.5 percentage points—from 57.1 per cent to 60.6 per cent.

The growth of debit card payments, widespread in Lithuania, increased the most. Over the year, the value of such payments increased nearly a quarter—to LTL 6.4 billion while the number of transactions grew 23.8 per cent—to 118 million. Respectively, credit card indicators increased by 9.9 per cent—to LTL 1.8 billion and by 9.4 per cent—to 12.8 million.

In total, the number of non-cash payments in Lithuania in 2012 equalled 311.6 million, the value of which amounted to more than LTL 740 billion. Over the year, the number of all non-cash payments increased by 13 per cent.

The largest part of payment instruments was still made up of credit transfers (53.5%). However, compared to last year, credit transfers among payment instruments decreased by 2.5 percentage points, while due to the significant growth in card payments in 2012, the part of the payment instruments structure made up of this payment instrument increased by 3.2 percentage points.

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