The Number of Domestic Money Orders has Doubled
According to estimations of Lithuania Post, the number of domestic money orders sent in the course of the current year has almost doubled if compared with the same period of 2013. The results were mainly determined by expanded number of PayPost outlets and shrinking network of bank units serving customers. “We can notice that more and more people choose money orders as an alternative to payment orders transferred via banks. Only a year ago even 80% of domestic money orders were delivered to receivers in person. Today the situation is totally different: even 60% of domestic money orders are used as an alternative for bank payment orders,” Lithuania Post’s Head of Financial Services Department Neringa Knyvienė said.
According to Mrs Knyvienė, the number of domestic money orders has doubled due to expanded network of financial services network PayPost. The network has reached 185 in number. In some towns post offices and PayPost outlets is the only place where citizens can use financial services.
Also, money orders are gaining popularity because of decreasing number of bank units. The banks in Lithuania are orientated to online services thus the number of customer service points is being reduced.
As an alternative to payment orders, domestic money orders are used not only by citizens but by small businesses as well. More favourable pricing promotes businesses to perform financial operations at post offices or PayPost outlets.
To send money, it is not necessary for the sender to have an account with a bank, and money can be paid out in cash at a post office or PayPost outlet or can be transferred to receiver’s bank account.
The Public Limited Company Lietuvos paštas runs the widest network of postal access points in Lithuania. Lithuania Post provides postal, logistics, and financial intermediation services.
