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The Cards and Payments Industry in Hungary: Emerging Trends and Opportunities to 2020

The Cards and Payments Industry in Hungary: Emerging Trends and Opportunities to 2020

Summary

Cash remains the preferred mode of consumer payments in Hungary, accounting for 68.3% of the country’s total transaction volume in 2016. However, the Hungarian government’s initiatives to encourage electronic payments, improved banking infrastructure, a consumer shift towards card-based payments, the growing acceptance of payment cards by retailers and the advent of contactless technology are expected to increase the share of electronic payments over the forecast period (2016-2020).

Banking penetration grew steadily in Hungary; 73.6% of the individuals aged above 15 have a bank account as of 2016. Concentrated efforts by the government, coupled with investment in payment infrastructure, led to an increase in the banked population. The central bank and commercial banks played an important role in increasing awareness through financial literacy programs such as workshops and promotional campaigns, which resulted in an increase in the total number of bank accounts and banking products.

Debit cards remain the most-used payment cards among Hungarian residents. To capture a larger share of the market, banks in Hungary initially targeted businesses, urging them to deposit the salaries of their employees directly into their bank accounts. The process, which began in the early 1990s, has now reached a point where almost all organizations in Hungary deposit salaries directly into the bank accounts of their employees. This has led to increased debit card penetration, and also provided banks with a platform to cross-sell their credit cards.

Contactless technology is expected to gain prominence among Hungarian consumers. Banks and payment service providers are also keen to promote contactless technology, and are launching new services to increase its uptake. Overall, the number of contactless cards increased significantly from 580,051 in 2012 to 5.7 million in 2016, as banks are trying to promote new technology to retain their market shares in the fast growing Hungarian payment cards market.

The report The Cards and Payments Industry in Hungary: Emerging Trends and Opportunities to 2020 provides top-level market analysis, information and insights into the Hungarian cards and payments industry.

In particular, this report provides the following analysis -

  • Current and forecast values for each market in the Hungarian cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, cash, direct debit and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis.
  • Analysis of various market drivers and regulations governing the Hungarian 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: OTP Bank, Erste Bank, UniCredit Bank, Kereskedelmi és Hitelbank-KBC Bank, Budapest Bank, Citibank, Visa, Mastercard, American Express.

Scope
  • The uptake of alternative payments among Hungarian consumers is gradually gaining traction, as a result of the emergence of a number of payment options. The latest of these is the launch of mobile carrier billing services by the mobile payments company Fortumo, along with the mobile operator Telenor in November 2016. This new service enables subscribers of Telenor to make payments in app stores, games and digital merchants by charging payments to their mobile phone bill. Previously, in July 2015, Mastercard, in association with OTP Bank, launched MasterPass in Hungary. The bank’s OTPay mobile wallet integrates the MasterPass app, which allows consumers to store their payment card details and shipping and billing address details in one place. This service enables OTPay consumers to make payments and person-to-person (P2P) fund transfers. Customers of other banks can also use the MasterPass platform for payments. Previously in May 2015, Vodafone Hungary launched the Vodafone Wallet app, in association with OTP Bank and Mastercard.
  • The uptake of contactless payments among Hungarian consumers is gradually gaining traction, as both banks and payment service providers are launching new solutions in the market. A key driver of contactless payments has been the increasing use of contactless payments in public transport systems. OTP Bank, in association with Mastercard and Magyar Telekom launched a new payment system in March 2015 to enable passengers in Szolnok city to make contactless payments for transportation using Mastercard and Maestro cards.
  • In a move to promote electronic payments, the Hungarian government launched the National Mobile Payment System in July 2014, allowing users to pay transportation fees using mobile phones via a national platform. This service allows consumers to make payments for parking, motorway toll stickers and Hu-Go road tolls using the mobile app. Consumers register on the national mobile payment system’s website or mobile app managed by Nemzeti Mobilfizetési, and can transfer funds to their account using payment cards or current accounts. In the one year since its launch, the system registered 17.9 million transactions.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Hungarian cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Hungarian cards and payments industry.
  • Assess the competitive dynamics in the Hungarian cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Hungary.
  • Gain insights into key regulations governing the Hungarian cards and payments industry.


  • Executive Summary
    • Market Overview
    • Key Facts
      • Table Hungary, Key Facts, 2016
      • Table Hungary, Regional Benchmarking of Payment Cards, 2016
    • Top Five Industry Events
  • Payment Instruments
    • Current Payment Environment
      • Table Figure 1: Hungary, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016
      • Table Figure 2: Hungary, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-Commerce Market Analysis
      • Table Figure 3: Hungary, E-Commerce Value, 2012-2020
    • Alternative Payment Solutions
      • MasterPass
      • PayPal
      • OTPay
      • Paysafecard
      • Vodafone Wallet
      • Telekom MobilTárca
      • Telenor-Fortumo direct carrier billing
      • Ukash
      • Skrill
  • Regulations in the Cards and Payments Industry
    • Regulatory Framework
      • SEPA cards framework
      • Hungarian financial transaction tax
    • Anti-Money Laundering
    • Foreign Direct Investment Regulations
      • Table Hungary, Mode of Entry of Foreign Banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: Hungary, Population and Economic Indicators
    • Table Figure 5: Hungary, ATMs, POS Terminals and Household Consumption
  • Payment Cards
    • Table Figure 6: Hungary, Payment Cards Transaction Value and Cards in Circulation, 2012-2020
  • Debit Cards
    • Debit Cards Market Analysis
      • Table Figure 7: Hungary, Debit Card Penetration and Turnover Per Card
    • Competition in the Debit Cards Market
      • Table Figure 8: Hungary, Debit Cards Scheme and Issuer Transaction Value Share, 2016
    • Debit Cards Comparison
      • Table Hungary, Debit Cards Comparison and Key Features, 2017
  • Pay Later Cards
    • Pay Later Cards Market Analysis
      • Table Figure 9: Hungary, Pay Later Card Penetration and Turnover Per Card
    • Competition in the Pay Later Cards Market
      • Table Figure 10: Hungary, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016
    • Pay Later Cards Comparison
      • Table Hungary, Gold Credit Cards Comparison and Key Features, 2017
      • Table Hungary, Premium Credit Cards Comparison and Key Features, 2017
      • Table Hungary, Charge Cards Comparison and Key Features, 2017
  • Appendix
    • Abbreviations and Acronyms
    • Supplementary Data
      • Table Hungary, Payment Instrument Transaction Values (HUF Trillion), 2012-2016
      • Table Hungary, Payment Instrument Transaction Values (US$ Billion), 2012-2016
      • Table Hungary, Payment Instrument Transaction Volumes (Million), 2012-2016
      • Table Hungary, Payment Cards in Circulation by Type (Million), 2012-2020
      • Table Hungary, Volume of Payment Card Transactions (Million), 2012-2020
      • Table Hungary, Value of Payment Card Transactions (HUF Billion), 2012-2020
      • Table Hungary, Value of Payment Card Transactions (US$ Billion), 2012-2020
      • Table Hungary, Debit Cards in Circulation (Million), 2012-2020
      • Table Hungary, Debit Card Transaction Volumes, 2012-2020
      • Table Hungary, Debit Card Transaction Values (HUF), 2012-2020
      • Table Hungary, Debit Card Transaction Values (US$), 2012-2020
      • Table Hungary, Debit Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Hungary, Debit Card Transaction Values by Scheme (HUF Billion), 2012-2016
      • Table Hungary, Debit Card Transaction Values by Scheme (US$ Million), 2012-2016
      • Table Hungary, Debit Card Transaction Values by Issuer (HUF Billion), 2012-2016
      • Table Hungary, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016
      • Table Hungary, Pay Later Cards in Circulation (Million), 2012-2020
      • Table Hungary, Pay Later Card Transaction Volumes, 2012-2020
      • Table Hungary, Pay Later Card Transaction Values (HUF), 2012-2020
      • Table Hungary, Pay Later Card Transaction Values (US$), 2012-2020
      • Table Hungary, Pay Later Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Hungary, Pay Later Card Transaction Values by Scheme (HUF Billion), 2012-2016
      • Table Hungary, Pay Later Card Transaction Values by Scheme (US$ Million), 2012-2016
      • Table Hungary, Pay Later Card Transaction Values by Issuer (HUF Billion), 2012-2016
      • Table Hungary, Pay Later Card Transaction Values by Issuer (US$ Million), 2012-2016
      • Table Hungary, Credit Cards in Circulation (Million), 2012-2020
      • Table Hungary, Credit Card Transaction Volumes, 2012-2020
      • Table Hungary, Credit Card Transaction Values (HUF), 2012-2020
      • Table Hungary, Credit Card Transaction Values (US$), 2012-2020
      • Table Hungary, Credit Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Hungary, Credit Card Transaction Values by Scheme (HUF Billion), 2012-2016
      • Table Hungary, Credit Card Transaction Values by Scheme (US$ Million), 2012-2016
      • Table Hungary, Charge Cards in Circulation (Thousand), 2012-2020
      • Table Hungary, Charge Card Transaction Volumes, 2012-2020
      • Table Hungary, Charge Card Transaction Values (HUF), 2012-2020
      • Table Hungary, Charge Card Transaction Values (US$), 2012-2020
      • Table Hungary, Charge Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Hungary, Charge Card Transaction Values by Scheme (HUF Billion), 2012-2016
      • Table Hungary, Charge Card Transaction Values by Scheme (US$ Million), 2012-2016
    • Definitions
      • Table Key Definitions
    • Methodology
    • Bibliography
    • Further Reading

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