Banks from states with developed electronic payments systems could enter the Romanian market in 2-3 years to offer their services in the credit cards sector.

They could replace the local credit institutions, due to the lower costs, warned Romanian National Bank (BNR) representatives, reports local Mediafax.

The cut in the interchange fees to 0.2% for debit card transactions and 0.3% for credit card transactions will significantly affect small banks, according to local bank and card operator representatives. They won’t be able to invest in new technologies, they say.

However, Ruxandra Avram, head of the Financial Stability Department within BNR, warned them they should not consider themselves only card service providers, but rather financial services providers.

editor@romania-insider.com