Companies in Portugal may be required to accept at least one electronic payment instrument, in addition to cash. The proposal is included in the National Strategy for Retail Payments 2030, put out for public consultation by Banco do Portugal until July 28th.
The measure is not yet in force. According to her, this is a possibility under study, which may require legislative changes. The objective is to adapt the payment system to new forms of consumption and the growing use of digital media by the Portuguese.
The proposal was prepared within the scope of the Payment Systems Forum and integrates a broader set of measures to modernize, make more secure and prepare the country for the payments of the future.
Card may become mandatory
One of the highlights is studying a change in the law that would oblige companies to accept, along with cash, at least one electronic payment instrument.
In practice, this does not mean that money is no longer accepted. The intention is to ensure that consumers also have a digital option, such as a card, immediate transfer or other electronic means available.
The proposal comes at a time when electronic payments are increasingly important in operations carried out in Portugal. Cards, direct debits, credit transfers and instant transfers dominate cashless retail payments.
According to Banco de Portugal, these instruments represented 99.8% of the number of retail payments made without cash in 2024.
Checks may lose even more space
Another measure under analysis involves studying and adopting possible ways to discourage the use of checks. The check has been losing importance in the daily lives of the Portuguese, although it still maintains relevance in some higher value transactions.
According to data released by the supervisor, checks represented just 0.2% of the number of transactions processed at SICOI in 2024. Even so, in value, they corresponded to 6.7%, which shows that they continue to be used in payments of more significant amounts.
The strategy does not point to the immediate end of the check, but it opens the door to measures that reduce its use. The objective will be to increase the efficiency, security and sustainability of payments.
Paper-based instruments, such as checks and commercial effects, today represent a residual portion of operations when compared to electronic means.
Digital euro is also on the horizon
The National Strategy for Retail Payments 2030 also provides for the preparation of the national ecosystem for a possible issuance of the digital euro.
The digital euro is a project under analysis in Europe and could function as an electronic form of money issued by the central bank. Its possible implementation will require technical, regulatory and operational preparation on the part of the different actors.
Banco de Portugal intends to monitor this work to ensure that the national system is prepared if digital currency advances.
This preparation is part of the vector dedicated to innovation and digital transformation, one of the four priority axes defined in the strategy.
Security and digital fraud in focus
The new strategy also highlights payment security. Banco de Portugal proposes measures to prevent and manage operational incidents, fraud situations and risks associated with digital payments.
Among the proposals is the creation of a digital fraud monitoring platform. The feasibility of a database of accounts used for improper payments is also being studied.
The supervisor also wants to ensure the evolution of beneficiary confirmation and verification solutions, in line with market needs and European developments.
These measures seek to reinforce consumer and business confidence in an increasingly digital payment system.
The data released shows that card payments continue to dominate the system. In 2024, they represented 89.5% of the number of operations processed at SICOI.
Contactless technology has also gained momentum. Contactless purchases increased by 24% in number and 26.9% in value. The weight of contactless purchases in total card purchases reached 56.7%, compared to just 7.8% before the pandemic.
Online purchases with national cards also registered significant growth, rising 37.2% in quantity and 38.3% in value.
These numbers help explain why Banco do Portugal wants to prepare the country for a more digital, secure and resilient payments system.
Public consultation runs until July
The proposal is under public consultation until July 28th. During this period, different entities in the sector, companies and citizens can analyze the document and make contributions.
Only after this process can the next steps be defined. Some measures depend on legislative changes and political decisions, so they are not immediately applicable.
Still, the proposal shows a clear direction: Portugal is preparing to reduce dependence on paper payments, reinforce digital means and ensure that consumers and companies have more modern solutions.
For now, paying in cash remains possible. But, in the future, companies may also have to provide at least one electronic alternative to their customers.
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