DinaCard introduces contactless technology

The NBS continuously implements activities aimed at improving the functionality of the national DinaCard card. The latest upgrade is in line with the current trends in the area of payment cards. Namely, the NBS is introducing contactless technology in the DinaCard system.

By 31 March 2024, the accepting banks will enable the acceptance of contactless DinaCard cards in the entire DinaCard network, and from 1 June 2024, all issuing banks will start issuing contactless Dina cards.

Contactless payments have become a reality, also in our market, and are being increasingly chosen by users. The simplicity of contactless payments is reflected in the fact that, when paying, the user just taps or holds the card near the terminal without entering the PIN. From the aspect of security, it is important to keep in mind that payment by contactless Dina cards are PIN-free for transactions of up to RSD 6,000, while for larger amounts it will be necessary to enter the PIN at the POS terminal.

Few countries can boast a national card system and the degree of development existing in Serbia in the past several years. The NBS reminds citizens that the use of a national payment card brings significant benefits and advantages for the society as a whole, and for this reason national card systems are present in a large number of advanced markets in the world – Germany, France, Denmark, Spain, Italy, Norway, Belgium, etc. The importance of national card systems is manifold:

  • lower costs incurred by banks in respect of national vs. international card systems; in practice, costs are passed on to users – merchants (via merchant fees) and citizens (via current account maintenance services, etc.), which means that the society as a whole will pay lower costs too;
  • funds charged for services with national payment cards remain in the country and do not flow out from the country, but contribute to the national economy;
  • services are adapted to local needs;
  • ensuring the independence of the financial system – payment card transactions do not depend on unilateral decisions of card systems (which are private companies) as the processing and netting of transactions with cards of international card systems is carried out outside the Republic of Serbia;
  • financial inclusion – domestic systems are better tailored to the needs of domestic buyers and merchants through the development of new products, wherefore cashless payments are more accessible to citizens and businesses; a successful example are debit card instalment payments  as the equivalent of cheques;   
  • enhanced competition – the creation of monopolies/duopolies that are typical of payment card markets is prevented (banks have more choices, international card systems cannot impose unfavourable business conditions).

By implementing contactless technology in the DinaCard system and keeping up with market requirements, opportunities are created to develop payments through mobile wallets and other digital payment methods, which will allow the DinaCard payment card to remain the first choice of merchants and payment card users. 

Payment System Department