Card and Payment Industry on the Rise in Bulgaria

According to a new report, the proliferation of payment cards in circulation nationwide grew 2.08% annually from 2009 to 2013, resulting in a figure of USD 8.5 M 2013. Thanks largely to increased awareness and new technologies such as contactless cards, the average transaction value also increased to USD 85.5 (15th in Europe).

This growth, in part, underpins the strengthening of Bulgaria's economy since the global financial crisis in 2009. In 2013 alone, GDP grew by 0.9% and is projected to rise to 3.0% by 2018. This boost can not only be attributed to the rapid modernisation of payment methods in Bulgaria, but will also greatly benefit the cards and payments industry. A greater volume of card ownership and a higher average transaction value marks the increasing modernisation of consumerism in Bulgaria, from which the economy can benefit greatly.

It must also be noted, however, that this climate does increase the risk of card fraud. Card skimming at ATMs is nothing new, but it stands to reason that the more card users, the greater the attraction for criminals. However, prepaid cards in particular are gaining significant ground and many of them can be created and used online, which could help to protect consumers from physical instances of card fraud. The online sphere is of course also a target for fraudsters who operate phishing scams and hack databases looking to steal card details. Nevertheless, so long as businesses and consumers alike are aware of online identity theft protection techniques, and practice them vigilantly, there's no reason why cybercrime should become any more proportionally widespread.

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