Use of plastic money soars in Greece

A report by the Institute of Commerce and Services of the National Confederation of Commerce and Entrepreneurship, released on Friday, highlighted the significance of electronic commerce in the development of enterprises and of the Greek economy in general. The basic conclusions of the report for 2014 are
-Money spent on visa cards in 2014 represented only one euro on each 33 euros of consumer spending, compared with one euro on every six euros in Europe, but this rate has dramatically changed since the imposition of capital controls in the country.
Visa Europe figures showed that in the first two weeks of the imposition of capital controls transactions with credit/debit cards soared 135 pct compared with the previous two-week period, with the food sector recording a spectacular 234 pct rise, followed by the health sector (206 pct) and petrol stations (193 pct). Turnover using POS for debit cards more than doubled compared with last year, while new codes for users of e-banking services rose five times with more than 150,000 new users in July.
The imposition of capital controls boosted the use of plastic money, offering a very significant dynamism to the sector. According to estimates, use of plastic money could contribute to the reduction of tax evasion (around 25 pct of GDP) by around 5.0 billion euros and raising tax revenue by more than 1.0 billion euros on an annual basis.
E-commerce showed signs of improvement in 2014, with Greek online consumers raising the number of categories purchased online by around 10 pct. Forecasts for 2015 remain positive with six out of 10 online consumers expected to raise the value of their online purchases, while only one in 10 was expected to cut spending.
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