The industry of banking financial services and
insurance is growing more actively with the development in the technologies of
financial services. Whereas, in November 2017, for turning up the electronic
payments in the Lithuania the bank of Lithuania launched the Single Euro
Payments Area (SPEA) instant payment system SCT Inst. SPEA will allow consumers
to make euro payments cashless to any account which is located anywhere with
the usage of single bank account and a single set of payment instruments. Moreover,
this bank perform primary functions such as maintaining price stability,
formulating and implementing the monetary policy and acting as an agent of the
state treasury. In 2018, for up surging the scope and acceptance of instant
payments, Bank of Lithuania (BoL) partnered with European payments company SIA
to access RT1. Furthermore, the key players are benefitted with the mergers and
acquisition for promoting the landscape of payment in Lithuania. The major goal
of SEPA implementation is to develop the effectiveness of cross-border payments
and transform the fragmented national industry for euro payments into a single
domestic one.
On the basis of Bank of Lithuania, contactless
payments, when anyone just need to touch a POS-terminal with your bankcard to
pay for an acquisition without entering the PIN code, are attaining effective
popularity and attention.
According to the report analysis, ‘Payments
Landscape in Lithuania: Opportunities and Risks to 2022’ states that some of the major
companies which are currently functioning in this domain more actively for
establishing effective payment landscape in Lithuania includes Swedbank, SEB,
Citadele, Luminor, Siauliu Bankas, Visa, Mastercard, American Express, PayPal
and several others. The Lithuanian banking segment is experiencing
consolidation because of the mergers and acquisitions of the key financial
institutions such as banks. Meanwhile, in October 2017 the Nordea Bank and DNB
Bank merged together for forming a new bank under the brand name of Luminor.
Prior in 2016, the Danske Banks’s retail banking services was acquired by the
Swedbank in the country. In January 2017 for attracting new entrants and to
decrease the concentration of market in the banking sector, the Bank of
Lithuania established a new type of Specialized Bank license.
With the help of this license, a bank can be
set up with a low initial capital requirement of EUR 1 million (USD 1.2
million) compared to the general requirement of EUR 5 million (USD 6 million).
This license enables banks to serve all the traditional banking facilities such
as lending, payment services and deposit acceptance while, the services related
to investment and pension funds are not offered. Moreover, in August 2018, over
1,000 payment service providers from 16 countries have joined the instant
payment scheme which includes Belgium, France, Spain, Portugal, Italy, the Netherlands,
Austria, Germany, Malta, Monaco, Sweden, Latvia, the UK, Estonia, Bulgaria and
Lithuania.
The landscape of the payments in Lithuania
will grow more significantly with the effective regulations of the BoL and the
mergers and acquisitions furthermore, the key players are also understanding
the key market trends and growth opportunities in the country cards and
payments industry.
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Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
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9015378249