A new initiative in Serbia, POS program 2.0, is set to provide significant support to small businesses by offering cost-free access to card payment terminals. This program aims to enhance the capacity of 11,000 small businesses to accept cashless payments, with a total estimated subsidy value of 2.3 million euros. Eligible participants include small businesses, entrepreneurs, public institutions, agricultural households, and tourism accommodation providers that have not accepted card payments in the past year.
The program offers subsidies for the introduction of POS terminals without installation or maintenance costs. It also caps the merchant fee for Visa and Mastercard payments at 0.5% for 12 months. This initiative builds on the success of a previous cycle, which saw nearly 10,000 entrepreneurs adopt cashless payments, resulting in 11.7 million transactions worth 146 million euros.
The program is part of the “Bolji način” initiative, a regional project by the German Organization for International Cooperation (GIZ) and companies Visa and Mastercard, aiming to improve financial inclusion and curb the grey economy. It is implemented in Serbia under the develoPPP program of the German Federal Ministry for Economic Cooperation and Development (BMZ), in collaboration with NALED and the Ministry of Finance. The program is supported by numerous banks, electronic money institutions, payment institutions, and POS solution providers.
According to Dušan Vasiljević, Director for Competitiveness and Investments at NALED, the previous program cycle demonstrated a strong demand for accessible cashless payment solutions among small traders. A survey conducted by NALED revealed that 71% of small businesses decided to introduce card payments to avoid losing customers. Furthermore, 85% of users reported a positive impact on their business from cashless payments, and 90% confirmed increased customer satisfaction.
The new program cycle allows participants to choose the type of POS terminal that best suits their needs, whether it be an upgrade to an existing smart fiscal cash register, a smart POS, a classic POS, a softPOS, or online sales on a website. Merchants can discontinue the subsidy and return the POS terminal at any time without additional costs, or continue using the POS under pre-agreed terms with the chosen provider after the subsidy period.
Applications for the program are open via the website boljinacin.rs and at participating banks and acquirers. Given the limited number of subsidies available, small businesses are encouraged to apply early.
This initiative is expected to have a significant impact on small businesses and the broader economy in Serbia by promoting modern business practices and aligning with consumer preferences for cashless transactions. However, the article does not provide information on how the program will be funded or the long-term sustainability of the subsidies. There may also be uncertainties regarding the uptake of the program by businesses that have not previously accepted card payments.
