Payment Cards in Hungary 2007

Published by: Datamonitor

Published: Mar. 21, 2007 - 86 Pages

Table of Contents

EXECUTIVE SUMMARY

INTRODUCTION

What is this report about?

Scope of the report

Structure of the report

MARKET CONTEXT

Introduction

Country overview

Demographics

Economy

GDP growth in Hungary has been steady

Inflation

Distribution of income (Gini coefficient)

Market size

Market penetration

Cards in issue

Number of transactions

Freguency of use

Value of card transactions

Average transaction value

Card acceptance

POS statistics

ATM Statistics

Market structure

Historical background

The development of the Hungarian banking sector can be divided into three major periods

1989-1994: economic crisis tests the robustness of the newly created banking system

1995-1998 - privatization process begins

1998-present - transformation is nearly completed

Overview of the current banking system

The Hungarian banking sector is relatively 'over-banked'

The structure of the banking system

The central bank - the National Bank of Hungary

Commercial banks

Savings and credit cooperatives

Credit bureaux

The process of privatization in the Hungarian banking sector

However, the government experienced difficulties with privatizing some of the larger banks

Since privatization, foreign players have dominated the Hungarian banking sector

Regulatory environment

Current supervisory environment

Key issues

SEPA

EMV migration

COMPETITOR AND PRODUCT OVERVIEW

Introduction

Card scheme market shares

Pay now cards

Cards in issue

Value of transactions

Credit cards

Cards in issue

Value of transactions

Charge and deferred debit cards

Cards in issue

Value of transactions

Card issuer market shares

Pay now cards

Credit cards

Charge and deferred debit cards

Competitor developments

Merger & acquisition activity in the Hungarian market has been moderate in recent years

Foreign player Erste Bank has singed an agreement with Hungarial Post to provide retail financial serives

Another foreign player KBC Bank has increased its stake in Hungarian K&H bank

A domestic player, OTB Bank, is looking to expand in Central and Eastern Europe

Product analysis

Credit card design

Co-branded cards

Citibank offers various co-branded cards linked to loyalty programs, including Malév and Shell

MKB offers Miles & More co-branded card in conjunction with Lufthansa arilines

Telecom and retail co-branded cards are becoming more widespread

Loyalty programs

Product innovation

The Hungarian market has seen several innovations

Budapest Bank offers a unique Lady credit card - only for women

In addition to Lady credit card, Budapest Bank offers telecom co-branded card with an innovative mobile payment solution

Raiffeisen Bank introduced a combined credit-and-debit card

FORECASTING THE PAYMENT CARD MARKET IN HUNGARY

Introduction

Forecasting the pay now card market

Forecasting the credit card market

Forecasting the charge and deferred debit card market

SWOT Analysis

Strengths

Weaknesses

Opportunitites

Threats

APPENDIX

Supplementary data

Market context

Forecasting the payment card market in Hungary

Definitions

Affinity Card

Credit Card

Deferred debit/charge card

EMV

EPC

Pay now cards

POS Terminal

Research methodology

Cards and Payments database

Future readings

Datamonitor's custom research capabilities

Cards & Payments Team contact details

How to contact experts in your industry

List of Tables

Table 1: GDP per capita for selected European countries, 2005

Table 2: Inflation rates in a number of major European markets, 2001 - 2005

Table 3: GINI coefficients in Europe, 2001 - 2003

Table 4: APRs, credit limits and interest free periods on selected credit cards in the Hungarian market

Table 5: Datamonitor's forecast for the pay now market, 2006f-2010f

Table 6: Datamonitor's forecast for the credit card market, 2006f-2010f

Table 7: Datamonitor's charge and deferred debit card market forecast, 2006f-2010f

Table 8: Population numbers and demographic splits in Hungary and other major European countries, 2005

Table 9: The percentage of people over the age of 20 in the major European countries, 2005

Table 10: GDP at current prices across major European countries, 2005

Table 11: Real GDP growth rates, 2001-2005

Table 12: POS terminals and population per terminal in Hungary, 2001-2005

Table 13: ATM terminals and population per terminal in Hungary, 2001-2005

Table 14: Card penetration in Europe, 2005

Table 15: Pay now card forecasts indexed to 2005

Table 16: Credit card forecasts indexed to 2005

Table 17: Charge card forecasts indexed to 2005

Table 18: Current relevant Datamonitor publications

Table 19: Future relevant Datamonitor publications, 2007

List of Figures

Figure 1: Overview of Hungary, 2005

Figure 2: Population size in European countries, 2005

Figure 3: GDP in European countries, 2005

Figure 4: Hungary has a large services sector, 2006

Figure 5: Hungary has seen steady economic growth, 2001 - 2005

Figure 6: Hungary has one of the lowest levels of penetration of cards in Europe, 2005

Figure 7: Pay now cards dominate the payment card market in Hungary, 2001 - 2005

Figure 8: Pay now cards account for the majority of transaction volumes in Hungary, 2001 - 2005

Figure 9: Frequency of use on pay now cards is low in Hungary, 2001 - 2005

Figure 10: Pay now cards account for the majority of transaction volumes in Hungary, 2001 - 2005

Figure 11: Credit cards have the highest average transaction value in Hungary, 2001 - 2005

Figure 12: POS network in Hungary, 2001-2005

Figure 13: ATM network in Hungary, 2001 - 2005

Figure 14: The activities of Hungarian banks are carried out under the supervision of PSZAF, 2004

Figure 15: MasterCard is the dominant scheme in terms of pay now card numbers, 2001-2005

Figure 16: MasterCard is also dominant scheme in terms of pay now transaction values, 2001-2005

Figure 17: MasterCard is dominant in terms of the number of credit cards in issue, 2001-2005

Figure 18: MasterCard is also dominant in terms of credit card transaction values, 2001-2005

Figure 19: MasterCard is dominant in terms of charge and deferred debit cards numbers, 2001-2005

Figure 20: MasterCard is also dominant in terms of charge and deferred debit card transaction values, 2001-2005

Figure 21: OTP Bank is the leading issuer of pay now cards in Hungary, 2005

Figure 22: OTP Bank is also the top issuer of credit cards in Hungary, 2005

Figure 23: OTP Bank is also the top issuer of charge and deferred debit cards in Hungary, 2005

Figure 24: A snapshot of the website dedicated to the Lady credit card, 2007

Figure 25: The pay now market is forecast to grow steadily in Hungary, 2005-2010f

Figure 26: The Hungarian credit card market is forecast to grow the most between 2006 and 2010

Figure 27: The charge and deferred debit card market is set to decline over 2006-2010f

Figure 28: The Hungarian payment card market, SWOT analysis, 2007

Figure 29: Datamonitor's core consulting capabilities

Abstract

Introduction

Payment Cards in Hungary is an invaluable guide to one of Eastern Europe's quickest growing payment card markets. Created using a combination of secondary and primary research, this report provides statistics on market size, market shares and card acceptance. It provides an overview of regulation, competitor activities and product innovation. It concludes with market forecasts and a SWOT analysis.

Scope

The focus of the report is on consumer payment cards, as opposed to commercial products Data and analysis provided on debit cards, credit cards and deferred debit and charge cards. The report parameters extend to issuance only. Merchant acquiring and card processing are not covered. Historic market data is presented from 2001 to 2005, with forecast data presented to 2010. Competitor market shares are presented for 2005.

Highlights

Hungary had the fifth largest payment card market in Central and Eastern Europe in terms of cards in issue at the end of 2005, growing at an average annual rate of 9.7 per cent over 2001-2005. The pay now sector continues to account for the majority of overall transaction value, with 78.9 per cent of total transaction value at the end of 2005. Like in other Central and Eastern European card markets, growth has been rapid in the revolving credit card market in Hungary. Today all major card players issue at least one co-branded card product in addition to cards linked to a broad range of loyalty programs, which typically consist of point-based rewards and discount programs. The Hungarian retail banking market is highly fragmented. Despite the fact that there is a large proportion of foreign players operating in the market, a domestic player - OTP Bank - has maintained its market position as the leading payment card issuer.

Reasons to Purchase

• Learn how the Hungarian consumer payment card market has developed between 2001 and 2005.
• Understand recent developments in the market in terms of consolidation, new entrants and product innovations.
• Find out Datamonitor's opinion on the future growth rate of the Hungarian payment card markets including debit, credit, deferred debit and charge.

Please note, this file is delivered as a Zip file.

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 300,000 market research reports, company profiles and country profiles from over 700 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.