Analytics, Financial Services, Lithuania

The service has become more attractive due to a new pricing.

"Last year we have introduced some changes to the procedures related to domestic money orders. We have refused money orders which could be collected by the receiver after presenting a written notice. These changes enabled to reduce service costs and cut the service price to customers almost twice. This had a considerable effect on the number of domestic money orders sent," says Head of Lithuania Post's Financial Services Department Neringa Knyviene.

Knyviene says almost 70 percent of money orders sent via post offices and the PayPost outlets rendering financial services are remitted to the receiver's account. This service is similar to the payment order service rendered by banks.

The receiver can collect the money order on the same day if it has been sent until 2 p.m. In case the money is sent later, it will reach the receiver's bank account on the next banking day at the latest.

It is not a must for the sender of the money order to have an account with a bank, only a valid ID is necessary, and the money sent can be remitted to the receiver's bank account or paid out in cash at any post office or PayPost outlet.

The wide network of PayPost outlets that has expanded to 186 in number has also had an impact on the number of domestic money orders.