End of cash’s reign boosts revenues

Electronic transactions help increase value-added tax revenues and contain the shadow economy, Finance Ministry data from the first quarter of the year show. The figures also indicate that a higher prevalence of card use results in higher income declarations, particularly from sectors that are notorious for underreporting their revenues, such as doctors, auto repair shops and parking garages.

According to the data, electronic transactions rose by 18.1% in the first three months of this year compared to the same period in 2022 and by 59% against the first quarter of 2019. 

This, ministry officials estimate, will lead to an increase in revenues this year by more than a billion euros, particularly because more receipts are being issued by professionals being paid by card rather than cash.

Another interesting finding, by the Bank of Greece, is that consumers are also using cards much more frequently for smaller transactions, prompting businesses like kiosks to install PoS machines.

Other services, like taxis for example, still have some way to go to provide more of their customers the option of paying by card, officials say.