bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 23.09.2018 | Name days: Vanda, Veneranda, Venija
LatviaLatvia

Economists: future to bring alternatives to bank cards

FaceBook
Twitter
Draugiem
print
(+3 rating, 3 votes)

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUIt is not expected mobile phones will replace bank cards in the nearest five years, yet alternative payment settlements will definitely co-exist along with the traditional ones. Moreover, people need time to adopt to the new solutions, according to the business news portal BNN economists survey.

In terms of cards safety, standards of international cards organizations (VISA, MasterCard) are being met. To give an example, Latvian banks are not allowed to issue payment cards without chips. In addition, since January 1, there are also new and safer standards for chips. Traders who accept card payments must ensure processing cards with chips as well. Given the fact these security standards are updated all the time, security concern will definitely not rank among the reasons for banks to abandon payment cards.

Most likely, they will launch new payment settlement products, including, mobile payments to co-exist parallelly with bank cards. It will all depend on the choice of the clients. If they are no longer willing to use cards and start opting for more modern means of payment, also banks will have no point in issuing the traditional plastic cards, Andis Zariņš, head of Danske Bank Cash Flow and Electronic Payment department, told the BNN.

Speaking about banking cards safety, the greatest challenge lies in the high security standards which do not apply to all regions worldwide. Many regions still allow payments with mere reading of the magnetic stripe. Consequently, this gives way for fraud. However, banks are carrying out measures to prevent any fraudulent activities and minimize risks, he says.

Cards is a good replacement of cash for daily deals. Having spiked 10%, compared to last year, card payments make up 70% at stores, leaving only 30% for deals in cash, says Ināra Tiltiņa, head of Swedbank Daily Service department.

She adds the card is practically an identification card where its authenticity, personal identification number (PIN), current account and other details can be checked within 10 seconds from any part of the world.

New solutions have their own advantages. However, it takes time to convince payment makers and receivers that the new solution is more convenient, cheaper and beneficial for it to make the entire world change its payment habits. Therefore, it is not likely mobile phones will replace bank cards in the coming five years. Yet, the process will take its place, for example, in small purchases, Tiltina emphasizes.

While Citadele Bank board member Guntis Beļavskis believes banks are able to develop alternatives to payment methods such as contactless cards, electronic money and others. Such payment card companies as American Express, MasterCard and Visa will keep working on this issue, because such changes affect hundreds of millions of people around the world and no bank is able to carry out such revolution on its own.

So, I think that in the nearest five-year period alternative payment methods will co-exist with bank cards. This is evidenced by the fact that, for example, Internet bank and mobile payments have existed for at least five years and, to date, bank cards have not disappeared from the market. On the contrary – they are playing an even more important role in reducing payments in cash, Beļavskis indicates.

Also Nordea Bank points out to the business news portal BNN payment cards will not lose their functions after five years.

BNN already reported, for the purposes of data protection, the Gulf countries intend to stop using bank cards in the next five years, replacing them with mobile and electronic payments.

Given that the Gulf countries are particularly vulnerable to cyber crime, banks hope to put an end to schemes by promoting Internet and mobile services.


Leave a reply

  1. Tian says:

    Looking forward to better payment options.

  2. Sailor says:

    These tiopcs are so confusing but this helped me get the job done.

  3. Emmy says:

    Yo, good loiokn out! Gonna make it work now.

BNN summary of the week: pre-election heat, rule of law in Latvia, Baltics prepare for Pope’s visit

BNN offers a summary of this week’s topical news in a variety of categories: Elections; Change; Stagnation; Fight; Visit; Investigation.

Court reschedules viewing of criminal case due to Non-citizens Congress leader’s poor health

Riga City Vidzeme Suburb Court announced today that the viewing of the criminal case in which leader of Non-citizens Congress Aleksandrs Gapoņenko is accused of inciting national hate will be postponed to a later date.

Producer prices in industry up 1.0% in Latvia in August

Compared to July, level of producer prices in the Latvian industry rose by 1.0 % in August 2018. Level of prices of products sold on the domestic market grew by 1.9 %, but of exported products – went up by 0.1 %.

Bishop: priest suspected of sexual abuse to be operated on in hospital

Pāvels Zeiļa, who is a priest of Rezekne Aglona diocese and the suspect in the criminal case regarding sexual violence and human trafficking, will undergo a complicated surgery on Friday, 21 September, as reported by Bishop Jānis Bulis.

Study: residents withdraw money from ATMs less often but in larger amounts

Every now and then discussions about dropping cash money altogether become active in society, AS PrivatBank representatives say.

HND Grupa design company, involved in Zolitude tragery, declared insolvent

Building engineer Ivars Sergets company HND Grupa, which was involved in the case revolving around the Maxima supermarket that collapsed in Zolitude, killing 54, not five years ago, has been declared insolvent, as reported by Latvijas Avīze.

Deputy Chief of State Fire and Rescue Service suspected of misappropriation

Latvia’s Interior Affairs Ministry’s Internal Security Bureau has detained deputy chief of State Fire and Rescue Service Ints Sēlis and one other official – a senior inspector, as reported by Panorāma programme of LTV.

Washington sanctions China for buying Russian military equipment

U.S. government has introduces sanctions against the Chinese army over a purchase of fighter jets and missile systems from Russia, despite a U.S. sanctions law targeting Moscow for attempts to sway in the 2016 U.S. election.

Autumn expected to begin soon in Latvia

Friday, 21 September, is expected to be warm in Latvia. Sun and considerable amount of clouds are expected, but not precipitation. Wind will draw in from the south, reaching a speed of 15-17 m/sec in western and central regions, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Brexit: a finish line with no end in sight

Less than 200 days are left before Britain officially leaves the European Union. The state of the agreement between Britain and EU only serves to create more chaos, from which neither Britain nor EU, or even Latvia will benefit.

EU underlines to London: No-deal Brexit also option

European Union's top officials and member state leaders planned to push for a Brexit deal in October, while urging London to give ground on the issues trade and the Irish border by November, to avoid a no-deal Brexit.

Lithuanian PM, a presumable presidential hopeful, set to curb grocery price growth

Having chastised food retailers on many occasions for high grocery prices, Saulius Skvernelis, the Lithuanian Prime Minister, stepped forward in the bid to harness local supermarkets. The presumed presidential candidate of the ruling Farmers and Greens (LVŽS) has summoned this week executives of major retail food chains, scolded them and reaffirmed his pledge to rein in the edging up prices.

Industrial prices in Estonia – up by 3.4% on year

The industrial price index in Estonia has risen from August 2017 to August this year by 3.4%, official statistics show.

Latvian parliament approves transition to competence-based approach in education content

On Thursday, 20 September, Latvia’s Saeima approved in the final reading amendments to the Education Law, necessary for the gradual introduction of competence-based approach in education materials.

Latvian Saeima wants to disallow shareholders to work in company management board

On Thursday, 20 September, Saeima approved in the first reading amendments to the Credit Institutions Law that provide for multiple measures to enhance Latvia’s finance system and its long-term stability, as reported by the parliament’s press-service.

Aglone Council prohibits residents from organizing protests during Pope Francis’ visit

A protest against the Catholic Church’s ban on abortions and expression of shock in relation to the recent sex scandals involving Catholic priests was planned to take place in Aglone during Pope Francis’ visit, but the city council decided to disallow them.

Latvian parliament conceptual supports pension bonus indexation

On Thursday, 20 September, Saeima supported in the first reading several initiatives for a more rapid pension climb for several groups of pensioners, as reported by Saeima press-service.

Majority Saeima deputies support open president vote; UGF members fail to decide unanimously

On Thursday, 20 September, amendments to the Constitution regarding open election of the state president were approved in the second reading.

Four Estonian parties have strong support, enough to enter Riigikogu

Four Estonian parties are believed to currently have enough support to enter the Estonian parliament, a broad opinion poll showed, as leading parties compete for voter backing.

Vitol Group concerned over state of rule of law in Latvia; turns to state officials

One of the largest energy resource traders in the world – Vitol Group – has sent a letter to Latvia’s highest ranking officials, expressing deep concern over the rule of law and application of legislative acts in the litigation between LatRosTrans and Polocktransneft Druzba over the EUR 66 million worth technological oil.

As Pope heads to Baltics, more attention to Catholic sex abuse

The time, when Roman Catholic Pope Francis is set to visit the Baltics, greatly differs from the visit by Saint John Paul II in 1993. There is public resentment over the countries spending several million euros to host the trip of the pontiff and the Catholic sex abuse scandals are topic of discussion.

Officials asked to take responsibility for misuse of state resources

If misuse of state resources takes place, officials have to take responsibility and pay for the damages caused to the state, says Public Expenditure and Audit Committee chairman Andris Bērziņš.

May asks EU not to divide Britain, while Brussels waits for UK change of position

At a European Union summit in Austria, UK's Prime Minister Theresa May called on EU leaders leave behind "unacceptable" Brexit demands that according to her may rip Britain apart.

Saeima decides to divide EUR 8.3 million of healthcare budget funds to finance reforms

Saeima’s Budget and Finance Committee has supported the initiative to divide EUR 8.277 million from the planned chronic patient care funding to further finance reforms in the country’s healthcare system.

20 complaints received in first 10 days of data protection regulation

In the first 100 days since adoption of European General Data Protection Regulation, Latvia’s Data State Inspectorate has received 20 data protection violation reports, said the centre’s director Daiga Avdejanova during a meeting of Saeima’s European Affairs Committee.

Newest comments