MIT reported that Minister of Foreign Affairs and Trade Péter Szijjártó met with the Fintech business delegation and representatives of Spanish corporate partners in Madrid, where he presented several government measures that are helping the development of the sector in Hungary.
The minister said that the environment in Hungary is favorable for the growth of financial technology (fintech) companies, which may contribute to achieving the government’s goal of reaching a 50 percent share for electronic payments by 2030.
Szijjártó said an immediate payment system had been introduced, requiring financial institutions to execute transaction orders under EUR 30,000 within five seconds, both on weekdays and weekends. He also said that the use of an online cash register has been made compulsory for basically all stores. This has already significantly reduced the volume of cash payments, and the method has proven an effective tool in the fight against tax fraud and the black market.
According to a survey by the Hungarian National Bank, the number of places accepting bank cards in Hungary increased by 9 percent in the second quarter of 2021 compared to the same period of the previous year, while 80 percent of the Hungarian adult population has a bank card according to OTP, the minister said.
He pointed out that Hungary is ideal for the growth of fintech companies thanks to its favorable labor and corporate taxes, which are the lowest in Europe. Szijjártó also mentioned that young people under the age of 25 will not have to pay personal income tax starting January 1, 2022, while taxes on labor will be reduced by another 2 percent in July.