09 2018 | NEWS
Five good reasons for Montenegro
Since the end of August, paysafecard has been on sale in more than 400 Tobacco S Press sales outlets. This means that our online prepaid means of payment is already available in 47 countries across the world, thereby taking a further step towards complete coverage of Europe. We are giving you here five convincing reasons why online merchants should switch on paysafecard for this ambitious Balkan country.
1. Montenegrin consumers pay in Euros
Montenegro has been an independent state since 2006. The Euro was introduced as the currency as early as 2002 and since then it has been the objective of the political leadership to join the EU. At the end of 2010, the Balkan state became an EU candidate country, and the official accession negotiations with the EU started in June 2012. The West Balkans Strategy of the European Commission announced in February envisages 2025 as the most likely accession date. In addition, Montenegro is a member of NATO, the United Nations, the Organisation for Security and Cooperation in Europe (OSCE), the International Monetary Fund (IMF) and the World Bank. For merchants, this means that they can conduct their business in a secure and stable currency. In addition, the political, legislative and structural conditions are being improved step by step through the prospect of EU accession.
2. Good economic prospects are creating purchasing power
Due to public investment in infrastructure and a steadily growing tourism sector, the Montenegrin economy is currently growing between 3 and 4% per year. This is the strongest growth rate in the entire Balkan region. As a result, GDP per capita is also growing - most recently to around USD 16,600. The engine of the economy is above all tourism. The country is advertised internationally with the slogan "wild beauty" and generates approx. 22% of its GDP from foreign visitors. In 2017, this industry achieved record growth: the number of tourists increased by 10.3% to 1.8 million and the number of overnight stays grew by 6.3%. Tourism thereby provides around 28,000 jobs, constituting 6.5% of overall employment. In addition, tourism is directly responsible for 34% of all construction investment and with motorway construction provides the most important engine for the construction industry. The overall effect is that an ever-larger sector of the population is acquiring more resources for private consumption. Above all, online.
3. Credit cards and bank accounts are used more rarely
As in many countries of Eastern Europe, the number of people who do not have a bank account is unusually high. Every fourth Montengrin has no bank account. Credit cards are only held by just 15% of the population. "We want to be and are the first providers taking account of these facts. We will provide these people with a means of payment with which they can pay online even without a credit card or bank account," says Udo Müller, CEO of paysafecard, emphasizing how much potential he sees in the entry to the market: "paysafecard, as an integral part of the digital world, fits optimally into this environment and will undoubtedly quickly develop a strong position in the local market." Online merchants therefore at last have with paysafecard a strong local partner which can help them attract entirely new groups of consumers.
4. The number of internet users is continuing to grow
The opening up of this 13,812 square kilometer country and the growing number of tourists both benefit greatly from the digitisation and the extension of the digital infrastructure. While in 2008, only 32.9% of the approximately 650,000 inhabitants were internet users, this figure grew by more than double in less than 10 years to almost 70%. It is now much higher still. The mobile user sector is particularly interesting in this connection. There are now more smartphones in Montenegro than inhabitants. As a logical consequence, the markets for e-commerce, games/gambling and online services will continue to grow strongly.
5. Well-established distribution network
For the success of a means of payment like paysafecard, a large distribution network is crucial. Worldwide, there are now more than 600,000 Points of Sale where consumers can buy paysafecard. In Montenegro itself, paysafecard is sold through the very well-known network "Tobacco S Press". The company operates among other things over 400 newspaper and tobacco shops across the entire country, in which paysafecard is on sale for nominal values of 5, 10, 25, 50 and 75 Euros. In addition, a distinction is made between two product types. "paysafecard gold" is aimed at users who primarily want to use it on selected betting and gambling platforms. "paysafecard classic", by contrast, is the preferred product for games and online entertainment. Right from the beginning, a market presence is therefore assured to make a good start possible for paysafecard. Naturally, the entry into the market is supported by corresponding marketing measures, so that merchants can be sure that the awareness of paysafecard among Montenegrin consumers will rise significantly in the very near future.
Have you been convinced by these arguments? Then contact your account manager. We can launch your market entry in Montenegro even today.