As we’re continuously digitally evolving, so does the whole process of payments and money transfer in general. This is an area that every industry has to deal with and the need for seamless and real-time transactions is felt stronger with each millisecond of our attention span decreasing.
Fortunately, the future of the digital economy looks bright due to professionals that persistently invest in innovation and seek the best technology solutions to upgrade our experiences. With this in mind, the company we’re about to present needs no further introduction, as it’s the actual leader in global digital payment solutions and technology — Mastercard. The recent global circumstances have accelerated the process of adopting new technologies even more, and we wanted to dig deeper into the behind-the-scenes of this successful representative. Therefore, we had a discussion with Cosmin Vladimirescu, Country Manager at Mastercard Romania, who told us more about their recent plans, the Romanian business ecosystem and a bit about a culture of collaboration:
Mastercard has always been one step ahead, by bringing the latest technologies and innovations to the market. Can you tell us more about your latest additions in terms of technology features and benefits?
Consumers and companies are now looking for newer technologies that can positively impact their lives and activity and we are working every day to challenge the notion of “that’s how we are used to doing it” to lead to transformational “can’t live without” products and services that can enhance daily experiences. We are using data and insights to connect our customers globally and create simpler and more secure ways to transact. We are powering growth not only for our banking partners but for everyone, everywhere. Together, we are innovating at a rapid pace today to shape a better future. Innovation is at the heart of everything we do.
For example, several years ago, we couldn’t have imagined other ways to pay for a bus or subway trip than by using proprietary cards or tickets. But today, thanks to our partnership with Masabi and UniCredit Bank, people in Bucharest can pay for their trip via BPay mobile app, and through our partnership with Metrorex and BCR, Romanians and tourists can tap their way onto the metro.
Also, this year we introduced along with phos an innovative mobile solution that enables micro, small and medium-sized merchants across Romania, Bulgaria, Germany and United Kingdom to accept contactless payments on Android mobile devices without the need for any additional hardware. It is a great alternative solution for MSME’s that traditionally accepted cash only, which is a disadvantageous and insecure type of payment due to hidden costs and security issues.
Two months ago, along with BRD — Groupe Société Générale we implemented locally the Octet platform, which helps SMEs to expand their business globally while ensuring payment security and managing cash flows. This solution encompasses Octet Europe’s state-of-the-art, cloud-based B2B trade platform, which thoroughly reviews each company in its network. Specifically, all members transacting on the Octet platform are extensively verified via industry-leading Anti-Money Laundering (AML), Know Your Customer (KYC), Counter-Terrorism Financing (CTF) and Economic Trade Sanctions (ETS) processes to reduce the risk for all parties in the network. This provides peace of mind for SMEs who want to find new business partners abroad and access foreign markets.
Furthermore, in 2019 we contributed to a paradigm shift in mobile payments by launching Apple Pay together with our partners — BCR, Banca Transilvania, Credit Europe Bank, Edenred, Monese, OTP Bank, Raiffeisen Bank, Revolut, UniCredit Bank and Sodexo. This service directly reinforces the simplification and security of mobile payments.
Over the past ten years, we have been closely working with local authorities to contribute to the launch, and then, to the development of ghiseul.ro, the online solution that has been enabling citizens for all over Romania to pay their taxes easily, safely and rapidly, regardless of their location. Thus, earlier this year, we reached an important milestone, which will help people benefit from a simplified procedure for filling in the income tax declaration on ghiseul.ro, as ANAF will now calculate the payment obligations and provide updated information regarding people’s taxes. This outcome is a result of consolidated work on behalf of ANAF, ADR and APERO.
These are just a few of the examples of how we are connecting the dots, thinking creatively, enhancing transactions and creating frictionless user experiences that never compromise on security and simplicity.
How do you perceive the Romanian business ecosystem in recent years, through the lens of your company?
I was glad to see a positive evolution of the Romanian business environment, through the development of more and more companies in the technology area, which have innovation embedded in their DNA. These businesses have created tech solutions, for which I have a professional, as well as a personal affinity, that completely changed the game rules. Let’s take UiPath as an example, which was founded in Bucharest and which, over the course of recent years, has registered a spectacular evolution, becoming the world’s leading RPA software company. Such companies are putting Romania on the global map of innovation and outstanding achievements.
For Mastercard, these past years were governed by successful partnerships, product and service launches, along with growth in the card sector, a growth that is closely related to the strong upward trend recorded by Mastercard. We maintained our leading position on the Romanian market — which is constantly developing — in terms of cards number, and we have seen spectacular increases in several segments, such as meal vouchers, credit cards, premium cards and contactless cards.
We noticed that your tagline A world beyond cash drives actionable plans along with it. Can you reveal some of your social projects that support this?
There are still many people that don’t have access to a bank account or any other reliable way to store and access their money. As such, they are reliant on cash and all the insecurities that come with handling it — cash is hard to trace, so you can’t get it back if it is lost, it facilitates crime associated with the shadow economy and it can be used only for proximity payments. And our vision of a world beyond cash comes with the idea that everyone deserves the tools to rely on safety at any given hour and participate in a growing economy. And we are working with local authorities, as well as NGOs and other businesses, to leverage technology that can drive financial inclusion and education.
In 2018, we teamed up with IOM, the UN Migration Agency, to provide financial education for vulnerable groups and to develop tailor-made financial products for migrants and refugees, such as the delivery of non-reimbursable financial support and incentives through pre-paid cards.
We supported the introduction of financial education in schools, as well as the organization of the Little Bankers Olympics, along with the Association for Promoting Educational Performance.
Last year, we succeeded in bringing contactless payments in several markets in Romania, giving small entrepreneurs the opportunity to stay relevant in an increasingly dynamic environment, and even grow their businesses.
We also launched, together with UniCredit Bank, the first debit card on the local market that can be used by children under 14, fueling further the financial education in Romania.
Last, but not least, we salute the initiatives of the Romanian Government to provide meals for vulnerable communities through electronic vouchers, as well as to support students by providing educational support through pre-paid cards.
However, continuous efforts are still needed for expanding the territorial infrastructure in order to allow access to financial services anywhere in Romania and to contribute to the advancement of financial inclusion and thus, to close the gap between rural and urban areas.
Mastercard is the official partner of Techsylvania: Beyond Borders. Learn more about them at www.mastercard.ro