Together using the banking sector, the nation's Bank of Serbia (NBS) has facilitated the use of the exceptionally current NBS IPS QR code for online payments, which ensures additional cost efficiency, but also maximum security and fast execution of payment transactions
“Governor Jorgovanka Tabakovi'c has placed e-commerce high in listing of priorities which is why the nation's Bank of Serbia is a vital participant within this process and it has made a very significant contribution by creating an incredibly favourable and stimulating regulatory framework to get rid of all administrative barriers and simplify the acquisition process by enabling using efficient online payment instruments,” says Dragana Stani'c, Vice-Governor in the National Bank of Serbia, about e-commerce in Serbia.
What do you consider the way e-commerce develop later on within our country and also the world, especially following the situation brought on by the COVID-19 pandemic? Do you know the trends and transformations that await us?
E-commerce continues to be growing strongly year-on-year, as evidenced by the fact that within the first quarter of 2020, the amount of transactions related to online purchase of products or services increased by 48.13% compared to the first quarter of 2019.
We are especially pleased with the truth that domestic retailers have achieved significant growth in online sales (an 80% development in the amount of online transactions relative to the first quarter of last year, as well as in 2019, the amount of transactions made on domestic sites was around 146.78% higher when compared with 2018).
This trend within the growth of online commerce may be the result of joint activities of businesses and also the state in neuro-scientific development and popularization from the digital way of doing business and directing activities to virtual environments to improve business efficiency.
In addition to the development of national payment instruments, the nation's Bank of Serbia has adopted two very important regulations that eliminate obstacles towards the growth and development of e-commerce, namely what the law states on Interbank Fees, which significantly reduced commercial fees for accepting payment cards at online points of sale which caused the growth of the online acceptance network. In just two years, the online acceptance network in Serbia is continuing to grow by 77%.
Another important regulation that opened the door to boosting virtual economic activity and also the development of digital banking may be the decree controlling the verification from the identity of the natural person using electronic way of communication, which created the conditions for creating a business relationship having a financial institution online.
All the above activities that people completed prior to the onset of the COVID-19 pandemic, gained in importance during the state of emergency in terms of relatively simple adaptation of our virtual vendors to the new situation.
What is Serbia’s current position in terms of the development of e-commerce services compared to the global market?
We possess a growing quantity of consumers who are not only skilled in making use of digital technologies, but they're also demanding in this regard. Retailers must adapt their business strategies, in addition to expand and enhance their services to keep pace with rapidly evolving needs. Every generation is looking for more effective and faster solutions to fulfil their wishes, which online purchase of services and products is really, great deal of thought saves time and it is simple.
Our e-commerce market continues to be recording significant growth, as aforementioned. The amount of virtual shopping outlets increased by 36.60% after the first quarter of 2020, which in absolute numbers stands at IQ – 1,228 virtual outlets when compared with 899 after the first quarter of 2019.
The National Bank of Serbia features instant payment by scanning the QR code. Can you provide us with a brief overview of the instant payment project within the Republic of Serbia? Just what does instant payment at a pos entail?
The IPS NBS system is the very first instant payment system in the Balkans. We are proud of the truth that the implementation of this system has positioned the Republic of Serbia in a small group of the most civilized world that have such a system as well as in the group of leaders when it comes to implementing instant payment at the point of sale.
In late February 2020, again in collaboration with the banking sector, the National Bank of Serbia facilitated using the NBS IPS QR code at points of sale through mobile banking applications, and the Governor officially launched this payment instrument at our largest retail chains.
It is essential to underline that this is definitely an NBS IPS QR code and not simply a QR code, because consumers might think that any QR code allows this type of payment, which is not true. For the purpose of payment, the NBS IPS QR code is standardized and prescribed through the National Bank of Serbia’s decree.
The NBS IPS QR code is really a standardized two-dimensional bar code with a predefined set of data to make payments at physical points of sale, as well as for online payments and invoice payments. This NBS IPS QR code is exclusive within our market and unequivocally designates that the instant payment is made with the IPS payment system of the National Bank of Serbia.
For that reason, as well as in to make this new payment instrument recognizable to the public and to encourage its use, but additionally to make it easier to understand which QR code can be used for payment, we have branded the service in cooperation with banks and are insisting on while using real name of this payment instrument. This also makes it easy for users to instantly recognize the purpose of sale that allows payment by NBS IPS QR code which is marked with a sticker bearing the abbreviation “IPS”, while the point of payment bears a sticker that gives information to the customer which IPS payment method they can use – IPS Scan or IPS Show.
The benefits of paying using the NBS IPS QR code at the online point of sale lie within the proven fact that the client, by simply scanning this code that is displayed on the retailers’ website and selecting the IPS Scan payment method after completing the order, downloads all of the data essential to execute the payment transaction in 2 clicks, i.e. makes the payment without resorting to additional data entry. The payment security is a vital element in this online payment method, considering that the customer doesn't leave any info on the retailers’ website, unlike when utilizing payment cards, but the entire payment process is managed through the customer via their mobile phone.
How much do people in our country use the option of paying via a mobile phone, i.e. via mobile banking applications?
In the first quarter of 2020, relative to exactly the same duration of the previous year, the amount of executed transactions using mobile banking increased by 25.62%, as the number of executed transactions using e-banking increased by 0.5%.
If we look limited to transactions initiated by individuals, the number of transactions performed using mobile banking in the same period increased by 24.45%, while the number of transactions performed by individuals using e-banking decreased by 1.66%.
In transactions initiated by legal entities and small businesses, using mobile banking, the amount of transactions increased by 35.7%, or by 0.94% when observing the number of transactions performed by legal entities and small businesses using e-banking.
Advantages of using NBS IPS QR code at points of sale
The costs of accepting instant payments are significantly lower for retailers than the costs of accepting payment card. Which means that the nation's Bank of Serbia, because of its extremely favourable tariff policy, has created prerequisites for banks to offer this service to retailers at significantly lower fees than online payment acceptance fees.
We think that these benefits of using the NBS IPS QR code are sufficiently stimulating that even small shops, which do not accept payment cards in their online points of sale, may use this innovative, but also more cost-effective payment method which is crucial for more development of e-commerce in Serbia.
