Card payments

Starting from June 16, 2024, Law 406/2023, which regulates bank cards and card payments for merchants, entered into force on the territory of Romania.

 

In the light of the new law, all merchants, regardless of the form of legal incorporation, commercial company or authorized self-employed person, are obliged to ensure the implementation and acceptance of at least one non-cash payment instrument for consumers.

 

What is the impact of this law on electronic payments?

 

The rapid adoption by consumers and the acceptance of card payment encouraged by this legislative measure for wholesalers and service providers with an annual turnover of 10,000+ euros, equivalent in RON, certainly contributes to the acceleration of card payments locally.

 

“If the adoption of electronic payments for online shopping was only 35% at the end of 2023, with 65% of online orders being paid by cash on delivery, the volume of orders paid online by card in advance is expected to increase, alongside with card payments in the case of offline shopping”, stated Elena Gheorghe, Country Manager of PayU GPO Romania.

 

According to PayU GPO internal data, but also specialist reports by Statista or McKinsey, in the last two years, more and more online shoppers choose to use simple and fast card payments or directly with their phone, using a card saved in Google Pay, Apple Pay or in the system of the payment processor they work with, no longer having to fill in the card data for each new transaction and also benefiting from increased security and control measures.

 

Thus, in addition to safety and comfort, consumers will also benefit from the new law from payment alternatives, the availability of several methods helping them to choose the most suitable one for their immediate needs.

 

On the other hand, the benefits for merchants are important for the growth of their business, with the biggest impact in:

 

• sales increase – by using several payment methods you ensure that you will increase the conversion rate and therefore increase the volume of transactions.

 

• customer loyalty – offering more payment options will encourage customers to shop again from you.

 

The educational factor is not to be neglected either, encouraging card payments contributing to increasing their use and educating the population regarding the use of electronic payments.

 

All these aspects will not only contribute to the popularization of electronic payments, but will also help reduce the informal economy, as electronic payments contribute to a legal and transparent circulation of money.

 

What payment methods are available to local merchants and what benefits do they have?

 

The payment methods that payment processors, such as PayU GPO, can make available to merchants and for the benefit of consumers are many and varied, including:

 

• Pay by click payment, making the payment with one click, for those who have their card saved with PayU, Google Pay or Paypal, a solution that contributes to improving the payment experience and the approval rate.

 

• Google Pay, a payment solution that was only available through the browser, from September 2021 is also on the provider’s page; the payment button is found on the PayU page when users are directed to make a payment, but also on the page of merchants that have implemented it.

 

• Apple Pay – a digital wallet available for select browsers and Apple devices (phone and desktop) that allows payments with your saved card and securely stores your card data.

 

• PayOnTime – transactions initiated by merchants for payments based on the acceptance given by the customer.

 

• 100% online credit, approved in a few minutes or payment in installments without interest, without the need to have such a card issued by a bank.

 

• Installment payments – the fastest growing online payment method in Romania, offering merchants access to an extensive customer base and buyers, payment method offered by several local banks.

 

• BNPL (Buy Now, Pay Later): deferred payment that facilitates access to simple, fast and secure online shopping for consumers who do not have immediate availability of founds.

 

• Fast Refund/Instant Money Back, a solution developed by PayU and a unique product in Europe, through which buyers can receive money back for a returned product, within 30 minutes of confirming the return.

 

• Multicurrency pricing* – payment in buyer’s preferred currency: EUR, USD or GBP, no currency conversion fee. *In Romania, 1 out of 4 online payments made from a credit card issued outside the country!

 

• Cross border payments – cross-border payments that allow merchants to expand their business across borders.

 

• Secure Fields – secure fields on the checkout page, which gives shoppers also access to card installment payment methods and greatly improves the entire payment experience.