The Impact of Banking Payment Systems on the National Economy: Implications for Urban–Rural Disparities and Cash Usage
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| Pages: | 4 : 15 |
| Abstract: | The digital transformation of payment systems has become a central component of financial modernisation, affecting transaction costs, financial intermediation, fiscal transparency and access to formal financial services. This paper examines the evolution and economic implications of banking payment systems in Romania, with particular attention to the coexistence of rapid growth in electronic payments and persistent dependence on cash among vulnerable and rural populations. Using descriptive secondary data from the National Bank of Romania, the National Institute of Statistics and Eurostat, the study analyses card-payment values over 2015–2024 and places these developments in the broader context of financial inclusion, digital infrastructure and urban–rural disparities. The total value of debit- and credit-card payments increased from RON 38.758 billion in 2015 to RON 339.463 billion in 2024, while the corresponding value per inhabitant rose from approximately RON 2.0 thousand to RON 17.8 thousand. At the same time, Romania remained above the EU average in the share of people at risk of poverty or social exclusion, indicating that payment digitalisation and socio-economic convergence do not advance uniformly. The paper argues that payment-system modernisation can improve efficiency, transparency and inclusion, but a policy strategy focused exclusively on cash substitution may create new forms of exclusion. An inclusive transition requires simultaneous investment in payment acceptance, connectivity, financial and digital literacy, and continued access to cash. |
| JEL classification: | E42, G21, G28, O16, O33, R11 |
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E42, G21, G28, O16, O33, R11
