Albania is witnessing a significant transformation in its payment landscape as more consumers opt for card payments over cash. The first half of 2024 saw a remarkable 36% increase in card transactions, reflecting a growing trend toward cashless payments.
According to the latest data from the Bank of Albania, a record-breaking 8.85 million card transactions were processed at electronic point-of-sale (POS) terminals from January to June. The total value of these transactions surged by 41%, reaching an impressive 37 billion lek, compared to the same period in 2023.
This shift is partly driven by a boom in tourism, as an influx of foreign visitors explores Albania’s picturesque landscapes and rich cultural heritage. However, it’s not just tourists contributing to this trend; a significant number of Albanians have also embraced card payments, especially as contactless options gained popularity during the pandemic.
The infrastructure supporting this transition is expanding rapidly. The number of POS terminals across the country rose to 21,775 by mid-2024, marking a 23% increase from the previous year.
For a nation where cash has traditionally been king, this shift is noteworthy. Albania has long struggled with high levels of informality and tax evasion, challenges that are more easily addressed in a cashless economy. As of mid-2024, the country had 1.48 million active bank cards, with debit cards making up the majority at 1.3 million. Credit card usage remains relatively low, with just 121,000 active cards.
With the peak tourist season still underway, card payments are expected to continue their upward trend, signalling a new era in Albania’s evolving economy.
