Greece ranks second in the EU in terms of the speed at which card usage is spreading.
New trends in payment habits in Greece
Card usage is increasing significantly, both in shops and online. Online transactions really took off during the pandemic and have since become indispensable.
Before coronavirus, the ratio of online to in-person payments was less than 1:5. During the pandemic, it climbed to around 1:3, and now in Greece we are almost at 1:2.
Many people now use their cards even for small purchases in shops. On the internet, they tend to use cards for larger amounts.
This can also be seen in the fact that there are more transactions with smaller amounts in shops. In e-commerce, on the other hand, the individual amounts are often higher.
Mobile and contactless payments are growing steadily. Digital wallets and QR-based solutions are also on the rise.
New rules and technical requirements are promoting card payments. The connection of POS terminals to tax authorities plays a major role in this.
Such measures create trust and make digital payments more accessible to everyone. This also facilitates the spread of new forms of payment.
The significance for tax revenue
More electronic payments mean measurably higher tax revenues. Every payment leaves a trace, which ensures greater transparency in sales.
Fewer cash transactions without accounting – that pleases the tax authorities. They can check more accurately and better prevent tax losses.
When POS terminals are mandatorily connected to the tax administration, everything becomes more traceable. Incentives and rules further drive the use of digital payments.
The result? More stable revenues for the tax authorities.
Of course, the effect depends heavily on the industry. Where many card payments are made, tax collection works better.
In areas where cash dominates, however, control remains difficult.
Where are most card transactions made?
Some industries generate a particularly high number of card payments. Typical examples:
- Retail: supermarkets, clothing stores, electronics retailers – many payments are made over the counter here.
- Hospitality: restaurants, cafés, hotels – often many small or medium-sized amounts.
- Services: transport, entertainment, leisure – there is a lot going on here, both on site and online.
- E-commerce: online shops, especially those selling specialised goods, usually have high average amounts.
These sectors really benefit from digital payments. Processes run more smoothly, receipts are available more quickly, and integration with accounting systems works better.
Less cash handling and faster turnover are real advantages. Integration into digital billing systems is much easier.
Table: Typical characteristics by industry
Industry |
Number of transactions |
Average amount |
Tax relevance |
|---|---|---|---|
Retail |
High |
Low–medium |
High |
Hospitality industry |
High |
Low–Medium |
Medium–High |
Services |
Medium–High |
Medium |
Medium |
E-commerce |
Medium |
High |
High |
Further targeted measures
Targeted measures often bring greater benefits when chosen correctly. A mix of technology requirements, incentives and education can significantly increase the acceptance and use of digital payments.
Here are a few examples of instruments that have proven themselves in practice:
- Requirement to link POS terminals to tax authorities in order to create greater transparency.
- Tax incentives for electronic receipts and digital payment processing.
- Support programmes for small businesses to enable them to introduce modern payment terminals.
- Awareness campaigns for consumers about the advantages and security of digital payments.
Such measures strengthen the fiscal base. At the same time, transaction costs are reduced, which is beneficial for all parties involved.
Better data helps to make analyses more accurate. This allows for more targeted controls.
Regulatory requirements meet market-driven solutions – this opens up scope for innovation. Banks, fintechs and merchants can work together to develop user-friendly, secure and yet affordable payment solutions.
This collaboration makes the economy more competitive. It facilitates digital transformation and distributes the benefits more widely throughout society, which ultimately benefits everyone.
