Cash to Contactless: History, Advantages, and Evolution of this Payment Mode in Albania

Abstract

Cash Payments have traditionally played a significant role in the economy of Albania, as in many countries. Over the decades, Albanian people prefer cash transactions due to cultural factors, financial inclusions, and economic considerations. Decades ago cash was the only way to perform payments, but the evolution of ATM, Debit Card, Credit Cards and other payment options, has played a significant role. During the latest years, the evolution of contactless payments reflects a significant shift in consumer behaviour and technology development. The 2010s saw rapid adaptation, fuelled by the rise of mobile wallets and smartphones, which integrated payment options seamlessly into daily life. In Albanian Banking Industry as contactless payments became more mainstream, advantages such as speed, convenience, security, and paying without any contact, pushed the Albanian customers to embrace this kind of payment, as the fastest choice to perform transactions. Contactless payments in Albania have been gaining traction in recent years, reflecting a broader trend towards digitalization in financial services, threating PIN & Chip payments. Through analyses between different periods, we will try to understand if the contactless payments are the first choice in Albania, and if the financial industries and customers are prepared to these rapid changes.

Received: 16 August 2024 / Accepted: 10 November 2024 / Published: 3 December 2024