MNB targets big increase in retail electronic transfers

In Hungary

Onchira Wongsiri/Shutterstock

The National Bank of Hungary (MNB) wants households to make half of their payments using electronic transfers by 2030, deputy-governor Mihály Patai told state news wire MTI in an interview, less than a month before the rollout of instant payments.

Image: Onchira Wongsiri/Shutterstock.com

At present, electronic transfers account for just 16%-17% of household payments, Patai said.

Hungarian banks have invested HUF 30 billion-40 bln in infrastructure upgrades to prepare for the launch of system-wide instant payments on March 2.

Patai said the measure, which aims to reduce householdsʼ cash transactions, will bring "revolutionary change" to the way financial transactions are made in Hungary and mark a "leap in quality" for banking clients.

The introduction of multi-factor authentication, eliminating the tedious task of entering a long bank account number for every transaction, will also make electronic transfers easier for retail banking clients, he added.

Patai said banks "still have work to do" to reduce transaction costs which are high in European comparison.

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