The tendency to popularize electronic payments, undoubtedly, will address the Belarusian financial market. The National Bank resolution No. 328 of October 21, 2020 gradually expands the FinTech potential in our market by regulating the off-bank systems and platforms operation. Restrictions on the targeted spending of electronic funds will be gradually lifted. In addition, banks and non-bank financial institutions will be granted an opportunity to provide services for e-money exchange between different payment systems.
As part of the key trend to convert all currency assets into national currency, residents of Belarus will encounter transactions with electronic money (issue, distribution and repayment) only in the national currency. At the same time, the scope of transactions to be performed by individuals, will also be expanded.
Now, the range of goods and services that can be paid for from an e-wallet, will significantly increase. The most widespread use of virtual money is assumed in gambling, lottery. and interactive games. For individuals, compliance with the requirements of the currency legislation will remain mandatory: ¬payments between individuals using e-wallets opened in foreign currency will continue to be illegal.
It should be noted that these measures together will ensure the high competitiveness of the national payment market, create more favorable investment environment and the basis for the export of payment services. Despite that electronic money issued by banks should be used for transactions between residents, it can be predicted that as the availability of services increases and the relevant costs are optimized, the Belarusian payment market will attract more and more non-bank payment service providers, creating a favorable business environment. Against this background, the population will cut their expenses when fulfilling their monetary obligations, and tariffs for settlement and cash services when using innovative payment methods, will also be reduced. As the main consequence of this transformation, we can predict the trend of replacing unprofitable bank branches and expensive banking infrastructure by non-bank payment service providers. These opportunities will certainly be used in small localities, creating conditions for new jobs and digitalization in the regions.