Romanians withdrew over EUR 6 billion from their cards in the first quarter of 2013, while payments via POS were at EUR 980 million, according to data from Romania's Central Bank. Most Romanians still prefer to withdraw their salary entirely from the ATM on pay day and use cash until the next pay day.

The average value of a transaction paid by card at a retailer was at RON 120 in the first quarter of the year. According to Visa, 40 percent of card owners don't keep their card in their wallet on a daily basis, instead they leave it at home after withdrawing the salary.

Electronic payment systems clearly help reduce the underground economy, said Catalin Cretu, general manager for Romania with Visa Europe. However, Romania still lags behind in Europe when it comes to the number of electronic transactions a year, with only 16, compared to the EU average of 180, per inhabitant a year. These include bank transfers, as well as direct debit and transactions with cards.

Romania's underground economy went down significantly in the last ten years, mostly due to preparations for joining the European Union, the global financial crisis and the increase in electronic payments, according to Visa Europe. The country's illegitimate economy is estimated at some EUR 39.6 billion for 2013, a drop of 3.5 percent compared to 2008 and of 15 percent on 2003. Despite the drop, Romania still ranks second in Europe, as the weight of the underground economy in the overall GDP is of 28 percent.

editor@romania-insider.com