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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