Mastercard, Digital Payments Index: Cash, card at the POS and account-to-account transfer, top 3 payment methods for Romanians

Romanians rely on cash for most everyday purchases, but they also commonly use widespread digital payment solutions, such as contactless POS terminals. There is a significant potential to improve the degree of understanding by users of digital payments, the level of knowledge of Romanian consumers regarding digital payment methods scoring 55 points out of 100, according to the Digital Payments Index, a report developed by Mastercard, which analyzes the evolution digital payments at national level.

“The data shows us that when a payment solution is considered secure, it is more widely used and perceived as convenient. If cash payment, card payment at the POS and account-to-account transfer are seen as the most secure and convenient to use, at the other extreme are methods such as payments made through services such as Buy Now Pay Later, QR codes and smartwatches -hate. Many consumers are not convinced that innovative solutions are safe, therefore they do not feel comfortable using them. Our role is to help people become familiar with digital payment methods, through access to information and involvement in education initiatives, including by creating contexts for using the card and modern payment options”, said Cosmin Vladimirescu, General Manager Mastercard Romania and Croatia.

The Knowledge sub-index analyzes the understanding of digital payment methods, the level of consumer familiarity with certain payment solution providers, their perceptions of the convenience and security offered by electronic payment methods, and the level of trust in solutions and service providers. The sub-index tracks three components: general knowledge of digital payment methods, intention to use them, and practical knowledge of how to use cashless payments.

General knowledge of digital payment methods

The General Knowledge of Digital Payment Methods component analyzes the level of information and familiarity of users with payment methods, examining indicators such as knowledge of different payment methods, specific providers and security measures related to digital payments. The component obtained 54 points out of 100, a score calculated based on the results of the three indicators: knowledge of payment methods – 65 points, knowledge of basic security measures – 64 points, knowledge of supplier brands and the solutions offered by them – 34 points.

All indicators registered improvements, which shows that the Romanian population is increasingly aware of digital payment solutions and their potential. At the same time, the level of familiarity with the names of the suppliers and the solutions offered by them remains low. The younger (18-30) and highly educated generation is open to newer solutions: 41% use digital wallets and 24% said they have already paid with a smartwatch or a QR code solution. On the other hand, respondents with pre-university education and the older generation (50-69 years) show a lower level of knowledge regarding innovative payment methods and mainly use more traditional payment solutions, such as card payment at POS and account-to-account transfer.

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At the same time, consumers are aware of security measures at a theoretical level, but they lack practical knowledge. Changing passwords or PIN codes is the most popular security measure, followed by SMS confirmation or mobile banking push notification of transfers. Although respondents were quite familiar with traditional security measures, more innovative measures such as fingerprint reader or facial recognition are not as preferred for use.

At the same time, respondents from the urban environment obtained 10% more correct results on the questions regarding various aspects related to digital payments than those from the rural environment, which can be attributed to the easier access to information in the urban environment.

Intention to use digital payment methods

The component analyzing Consumers’ Intention to use digital payment methods scored 57 points out of 100. Consumers’ intention to use digital payments is based on their perception of the convenience of using different payment methods, their perceived security and general openness towards payment innovation.

The easier a payment method is considered to be by consumers, the more secure it is perceived to be. Cash is the most commonly used payment method, considered safer than other available methods. The second place in Romanians’ preferences is occupied by contactless payment with a card at a POS terminal, and the third place belongs to the instant account-to-account transfer.

Practical knowledge of how to use non-cash payments

The component assessing the level of Practical knowledge of how to use cashless payments measures respondents’ understanding of digital payment alternatives and whether they have the skills to use them effectively. It registered 55 points out of 100, a result indicating that the limited understanding of the technical aspects of digital payments prevents many Romanians from appreciating the ease of using these methods and, therefore, their adoption.