Cashless, Contactless, the future of payments in Belgium.

Cashless, Contactless, the future of payments in Belgium.

It’s a common thing to say that Belgium’s economy is very much cashless.

According to the ECB (European Central Bank), in 2017, cash represented only 32% of the value of all transactions at points of sale, even if in terms of the number of transactions, cash is still used in 63% of cases.

One explanation could be that until recently, retailers were reluctant to accept card payment for small amounts (usually under 10 or 15 €) due to relatively high transaction and communication costs determined by payment operators. This situation ended when PSD II entered into force: the share of cashless payments should logically continue to increase and accelerate along with the apparition of new Payment Initiation Service Providers (PISPs).

Even without this, Belgium is already a European and a world champion of cashless transactions.

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PSD2 IN A NUTSHELL

PSD2 IN A NUTSHELL

The 2nd Payment Services Directive (PSD2) establishes rules concerning:

·         Respective rights and obligations of payment service users (PSU) and payment service providers (PSP).

·         Transparency of conditions and information requirements for payment services.

PSD2 aims at making payment more secure and cheaper, further opening the market for PSPs in an integrated European market.

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