Cashback Law in Romania
Solution:
Step 1: Legislative Reform
– Drafted amendments to reduce the threshold from €100,000 to €10,000, making card acceptance mandatory for more businesses.
– Engaged MPs, the Ministry of Finance, and the National Bank to gain support.
Step 2: Public & Business Advocacy
– Partnered with SME associations to highlight the benefits of digital payments.
– Ran a media campaign showcasing the positive impact of cashback and card acceptance.
Step 3: Parliamentary Victory
– Successfully pushed amendments through Parliament.
– Ensured unanimous approval in the Chamber of Deputies in 2016.
Results:
- Card acceptance expanded 10x, making payments easier for businesses and consumers.
- Cashback law passed, allowing shoppers to withdraw cash from retailers using their cards. However, law changed in 2018,
- Increased digital payments, reducing Romania’s reliance on cash.
- Client: Mastercard
- Year: 2016-2018
- Challenge: In 2015, Romania had just 10,000 ATMs and 100,000 POS terminals—severely limiting digital payments. The law required businesses with an annual turnover of €100,000+ to accept card payments. The solution was to lower threshold for card paments