Greek government enforces e-payments due to EU bailout

These are the findings of the report from Timetric’s Cards and Payments Intelligence Center (CPIC). In August 2015, the EU approved a bailout package worth EUR 86 billion, provided the Greek government impose capital control measures. These mean controls on the outward flow of money, tax increases, public spending cuts and efforts to tackle tax evasion through electronic payments.

One measure is compulsory acceptance of card payments at retail outlets and with certain categories of professionals such as doctors, lawyers, electricians and plumbers, effective from 1 January 2016. The government also promised incentives for businesses to promote electronic payments such as subsidising the cost of POS terminals and extending tax benefits on earnings from sales paid via payment cards.

Greece ecommerce market is registering a CAGR of 18.83% during 2011–2015, in terms of transaction value. While the capital control measures are applicable for overseas online purchases, domestic transactions are exempt, driving local ecommerce trade. Moreover, the restriction on online purchases from foreign retailers is likely to be lifted by the end of 2016 with the gradual recovery of the economy.

To capitalise on this trend, banks in Greece now offer customised cards for online payments, such as MasterCard’s Prepaid Virtual Card by Piraeus Bank, and the Virtual Prepaid MasterCard by National Bank of Greece.