Market Research Logo

The Cards and Payments Industry in Greece: Emerging trends and opportunities to 2020

The Cards and Payments Industry in Greece: Emerging trends and opportunities to 2020

Summary

Greece was severely affected by the Eurozone crisis, due to government overspending, tax evasion, and a budget deficit that eventually spiraled out of control. Many banks faced liquidity problems and loan defaults, which had a direct impact on the cards and payments industry. With restrictions placed by the Greek government on cash withdrawals, consumers fear that banks might freeze available funds. This has driven debit card transaction volumes at point of sale (POS) terminals, which registered a review-period (2012-16) compound annual growth rate (CAGR) of 58.9%.

Government announced a number of initiatives to revive the economy, including cuts in public sector employment, defense, and other government spending. In 2010, the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC) announced a three-year aid package worth $115.7bn (EUR110bn) to bail out the Greek economy. A second bailout of $136.8bn (EUR130bn) followed in February 2012.

In August 2015, the EU approved a $90.5bn (EUR86bn) bailout, provided the Greek government impose austerity measures including a tax increase, public spending cuts, and efforts to tackle tax evasion by encouraging electronic payments. With the anticipated economic revival and the injection of liquidity into the banking sector, the Greek payment card market is anticipated to gradually shift towards sustainable growth over the forecast period (2016-20).

Despite the financial crisis, Greece’s e-commerce space is one of the fastest-growing in Europe. It grew from $2.9bn (EUR2.8bn) in 2012 to $4.9bn (EUR4.7bn) in 2016, at a review-period CAGR of 13.6%. The preferred mode of payment for e-commerce transactions was payment cards, which accounted for 35% of the total transaction value. Digital and mobile wallets, as well as carrier billing, are gaining prominence in the country, collectively accounting for 28.4% of total e-commerce transaction value in 2016.

Ministry of Finance is also encouraging the use of debit and credit cards for payments by providing tax allowances on payment card usage. Tax payers can get additional allowances on using payment cards for 80% of expenditure annually. The ministry has also proposed incentives for businesses by reducing the tax rate on earnings from sales via payment cards. This will boost the usage of debit and credit cards and help resolve the problem of tax evasion.

The report The Cards and Payments Industry in Greece: Emerging trends and opportunities to 2020 provides top-level market analysis, information and insights into the Greek cards and payments industry.

In particular, this report provides the following -

  • Current and forecast values for each market in the Greek cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, cash, direct debit, payment cards and cheques. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • Analysis of various market drivers and regulations governing the Greek cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
Companies mentioned in this report: Piraeus Bank, National Bank of Greece, Alpha Bank, Eurobank Ergasias, Visa, MasterCard, American Express, Diners Club

Scope
  • In the wake of the economic crisis, the Greek government was forced to implement austerity measures to gain access to a $95.5bn (€86bn) bailout package from the IMF, the EU, and the ECB. Consequently, the government imposed capital controls and took a number of measures to arrest the outward flow of money, curb tax evasion, and encourage electronic payments, including restrictions on cash withdrawals at ATMs, remittances, and the use of payment cards abroad. The latest measure is the compulsory acceptance of card-based payments at retail outlets and by certain categories of professional (such as doctors, lawyers, electricians, and plumbers) effective from January 1, 2016. However, the restrictions imposed on cash withdrawals and fund transfers were relaxed in August 2016 to increase liquidity in the banking system.
  • To boost electronic payments, in November 2016 the Greek government proposed to provide tax benefits and other incentives to individuals and businesses for using payment cards. These include additional tax benefits to those who use cards for more than 80% of their total annual spending, and tax discounts on medical expenses paid with payment cards. The ministry has also proposed incentives for businesses by reducing the tax rate on earnings from sales via payment cards. The government also proposes to make it compulsory for businesses to pay their employees through a bank account if their annual salary is above $526.10 (€500).
  • While the government has placed restrictions on transactions from international online retailers, domestic e-commerce activities are outside the boundaries of the rules. To benefit from this, payment companies are introducing new online payment solutions for domestic online purchases. The latest of these was the June 2016 introduction of Masterpass by Mastercard. Masterpass stores all of a customer’s payment cards in a single location. This service is supported by Alpha Bank, Piraeus Bank, Eurobank Ergasias, AXA Insurance, Leroy Merlin, Sephora, and Wind.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Greek cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Greek cards and payments industry.
  • Assess the competitive dynamics in the Greek cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Greece.
  • Gain insights into key regulations governing the Greek cards and payments industry.


  • Executive Summary
    • Market overview
    • Key facts
      • Table Greece: key facts, 2016
      • Table Greece: regional benchmarking of payment cards, 2016
    • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: Greece: payment instrument shares by transaction value (%), 2012 vs 2016
      • Table Figure 2: Greece: payment instrument shares by transaction volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-commerce market analysis
      • Table Figure 3: Greece: e-commerce value
    • Alternative payment solutions
      • Masterpass
      • paysafecard
      • winbank wallet
      • my Alpha Wallet
      • Viva Wallet
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
      • SEPA cards framework
      • Interchange fee regulation
    • Anti-money laundering
    • Foreign direct investment regulations
      • Table Greece: mode of entry of foreign banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: Greece: population and economic indicators
    • Table Figure 5: Greece: ATMs, POS terminals, and household consumption
  • Payment Cards
    • Table Figure 6: Greece: payment card transaction value and cards in circulation, 2012-20f
  • DebitCards
    • Debit card market analysis
      • Table Figure 7: Greece: debit card penetration and turnover per card
    • Competition in the debit card market
      • Table Figure 8: Greece: debit card scheme and issuer transaction value shares, 2016
    • Debit card comparison
      • Table Greece: debit card comparison and key features, 2016
  • Pay-later Cards
    • Pay-later card market analysis
      • Table Figure 9: Greece: pay-later card penetration and turnover per card
    • Competition in the pay-later card market
      • Table Figure 10: Greece: pay-later card scheme and issuer transaction value share (%), 2016
    • Pay-later cards comparison
      • Table Greece: gold credit card comparison and key features, 2016
      • Table Greece: premium credit card comparison and key features, 2016
      • Table Greece: charge card comparison and key features, 2016
  • Prepaid Cards
    • Table Figure 11: Greece: prepaid cards in circulation and total transaction value, 2012-20f
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Greece: payment instrument transaction values (€bn), 2012-16e
      • Table Greece: payment instrument transaction values ($bn), 2012-16e
      • Table Greece: payment instrument transaction volumes (millions), 2012-16e
      • Table Greece: payment cards in circulation by type (millions), 2012-20f
      • Table Greece: volume of payment card transactions (millions), 2012-20f
      • Table Greece: value of payment card transactions (€bn), 2012-20f
      • Table Greece: value of payment card transactions ($bn), 2012-20f
      • Table Greece: debit cards in circulation (millions), 2012-20f
      • Table Greece: debit card transaction volumes (millions), 2012-20f
      • Table Greece: debit card transaction values (€), 2012-20f
      • Table Greece: debit card transaction values ($), 2012-20f
      • Table Greece: debit cards in circulation by scheme (millions), 2012-16e
      • Table Greece: debit card transaction values by scheme (€bn), 2012-16e
      • Table Greece: debit card transaction values by scheme ($bn), 2012-16e
      • Table Greece: debit card transaction values by issuer (€bn), 2012-16e
      • Table Greece: debit card transaction values by issuer ($bn), 2012-16e
      • Table Greece: pay-later cards in circulation (millions), 2012-20f
      • Table Greece: pay-later card transaction volumes (millions), 2012-20f
      • Table Greece: pay-later card transaction values (€), 2012-20f
      • Table Greece: pay-later card transaction values ($), 2012-20f
      • Table Greece: pay-later cards in circulation by scheme (000s), 2012-16e
      • Table Greece: pay-later card transaction values by scheme (€m), 2012-16e
      • Table Greece: pay-later card transaction values by scheme ($m), 2012-16e
      • Table Greece: pay-later card transaction values by issuer (€m), 2012-16e
      • Table Greece: pay-later card transaction values by issuer ($m), 2012-16e
      • Table Greece: credit cards in circulation (millions), 2012-20f
      • Table Greece: credit card transaction volumes (millions), 2012-20f
      • Table Greece: credit card transaction values (€), 2012-20f
      • Table Greece: credit card transaction values ($), 2012-20f
      • Table Greece: credit cards in circulation by scheme (000s), 2012-16e
      • Table Greece: credit card transaction values by scheme (€m), 2012-16e
      • Table Greece: credit card transaction values by scheme ($m), 2012-16e
      • Table Greece: charge cards in circulation (millions), 2012-20f
      • Table Greece: charge card transaction volumes (000s), 2012-20f
      • Table Greece: charge card transaction values (€), 2012-20f
      • Table Greece: charge card transaction values ($), 2012-20f
      • Table Greece: charge cards in circulation by scheme (000s), 2012-16e
      • Table Greece: charge card transaction values by scheme (€m), 2012-16e
      • Table Greece: charge card transaction values by scheme ($m), 2012-16e
      • Table Greece: prepaid cards in circulation (000s), 2012-20f
      • Table Greece: prepaid card transaction values (€m), 2012-20f
      • Table Greece: prepaid card transaction values ($m), 2012-20f
    • Definitions
      • Table Key definitions
    • Methodology
    • Bibliography
    • Further reading

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report