Visa Expands Partnerships to Drive Cashless Economy in Southeast Europe
US-based digital payment provider, Visa, is expanding its partnerships in Southeast Europe (SEE) to drive the growth of the cashless and digital economy in the region, according to Snezana Sofijanic, Visa’s head of government engagement in the Western Balkans.
Visa aims to be a strategic partner to central banks, governments, banks, merchants, and other key players in SEE. By collaborating with these entities, Visa intends to stimulate the adoption of cashless payments and innovative technologies that can accelerate the process.
In the Western Balkans, Visa is reframing the challenges faced by governments as opportunities for growth. The company believes that small businesses can benefit from more affordable options for going cashless, thanks to contactless payments using smartphones and smartwatches. Visa has also made significant investments in security measures to safeguard digital transactions and prevent fraud.
One of Visa’s successful initiatives in the region is the ‘Better Way’ project, launched in Serbia in June 2021. This collaboration between Visa, the Serbian finance ministry, the National Alliance for Local Economic Development (NALED), the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and a U.S. payment network aims to promote a cashless economy in Serbia.
As part of the initiative, over 1,700 small enterprises in Serbia have received cashless payment acceptance devices free of charge for one year. They have also benefited from reduced fees for processing payments through the support of participating banks. This project aligns with the Serbian government’s efforts to combat the shadow economy and promote the use of e-fiscalisation.
A recent study by Serbia’s economic policy research foundation FREN indicates that aligning Serbia’s cashless economy with the average for Central and Eastern Europe could potentially reduce the shadow economy by approximately 3.4% of the GDP. This, in turn, could result in an estimated yearly increase of around 700 million euros in tax revenues over the span of six to seven years.
Switching to a cashless economy not only supports small business growth but also contributes to the overall prosperity of the community. Transparency, fair play, and modernization are promoted through the adoption of cashless payment systems.
Visa’s expansion of partnerships and commitment to driving the cashless economy in Southeast Europe is expected to bring about significant socio-economic benefits. By collaborating with central banks, governments, and other stakeholders, Visa aims to accelerate the adoption of digital payments and innovative technologies that can foster financial inclusion and economic growth in the region.
