Romanians rely on cash for most everyday purchases, but they also commonly use digital payment solutions, according to a Mastercard report released Monday at noon. “There is significant potential to improve user understanding of digital payments, with Romanian consumers’ knowledge of digital payment methods scoring 55 out of 100, according to the Digital Payments Index,” said Mastercard’s report, which analyzes the evolution of digital payments at the national level.

“The data shows us that when a payment solution is perceived as secure, it is more widely used and perceived as convenient. If paying in cash, paying by card at the cash register and transferring from account to account are considered the most secure and convenient to use, then at the other pole are methods such as payments through services such as “Buy now, pay later”, QR codes and smart clocks – hatred Many consumers are not sure about the safety of innovative solutions, so they are uncomfortable using them. Our role is to help people become familiar with digital payment methods through access to information and involvement in educational initiatives, including by creating a context for using the card and modern payment options,” said Cosmin Vladimirescu, General Manager of Mastercard Romania and Croatia .

The knowledge sub-index analyzes the understanding of digital payment methods, the level of consumer awareness of certain payment solution providers, their perception 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 component “General knowledge of digital payment methods” analyzes the level of information and awareness of users about payment methods, examining indicators such as knowledge of different payment methods, specific providers and security measures related to digital payments. The component received 54 points out of 100, the score is calculated based on the results of three indicators: knowledge of payment methods – 65 points, knowledge of basic security measures – 64 points, knowledge of supplier brands and the solutions they offer – 34 points.

All indicators recorded an improvement, 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 suppliers and the solutions they offer remains low.

The younger (18-30) and highly educated generation is open to the latest solutions: 41% use digital wallets and 24% said they have already paid with a smartwatch or QR code.

On the other hand, respondents with higher education and the older generation (50-69 years old) show a lower level of knowledge about innovative payment methods and mostly use more traditional payment solutions, such as card payment at the POS and account-to-account transfer.

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

At the same time, respondents from an urban environment got 10% more correct results on questions about various aspects related to digital payments than respondents from a rural environment, which can be explained by easier access to information in an 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 ease of use of various payment methods, their perception of security and general openness to payment innovations.

The simpler the payment method is perceived by consumers, the safer it is considered to be. Cash is the most common payment method and is considered safer than other available methods. The second place in Romanians’ preferences is contactless payment by card at a POS terminal, and the third place belongs to an instant transfer from account to account.

Practical knowledge of the use of non-cash payments

The component assessing the level of practical knowledge about the use of non-cash payments measures respondents’ understanding of digital payment alternatives and whether they have the skills to use them effectively. It scored 55 out of 100, a result that suggests that a limited understanding of the technical aspects of digital payments prevents many Romanians from appreciating the ease of use of these methods and, therefore, their adoption.

About the Index of digital payments

The Digital Payments Index (DPI) is an analysis tool that tracks the evolution of digital payments at a national level. The index was conducted this year in four countries: Austria, Croatia, Romania and Hungary, analyzing data registered at the level of 2022. Romania received a score of 56 out of 100, a result calculated from the individual scores of three sub-indices: 70 for infrastructure, 55 for knowledge and 44 for use.