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

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

Summary

Cash remains the predominant payment instrument, accounting for 54.4% of overall transaction volume in 2016. However, with banks and the government strongly focusing on financial inclusion, the payment card market is gradually gaining prominence in the country. Payment cards accounted for 18.9% of overall cards and payments transaction volume in 2016 - up from 15.9% in 2012.

Financial inclusion remains a priority for the Slovenian government, which plays a key role in promoting financial literacy in the country. The Ministry of Education, Science and Sport provides financial education for primary school children, through which it educates students about income, expenditure, different forms of money, and their functionalities. The Bank Association of Slovenia - a body comprising major banks and leasing companies in the country - constantly works towards creating consumer awareness of financial services by organizing workshops and seminars.

High banking penetration and rising competition among Slovenian banks is posing a challenge for banks in terms of customer retention. To retain existing customers and attract new ones, banks are focusing on providing improved service, attractive reward programs, and financial incentives. Traditionally banks have offered current accounts with basic features such as a cheque book and debit card. However, current accounts are now evolving into a multi-purpose package offering a number of other financial benefits. As the combined cost of obtaining these services individually is often higher, many customers opt for bundles, enabling banks to cross-sell products and increase transaction volumes.

Contactless payments are expected to gain traction in Slovenia. NLB became the first bank in the country to offer contactless payments in November 2014. NLB’s Mastercard contactless card also offers installment facilities, and can be used to make payments at more than 7,475 terminals in Slovenia. Most recently, in March 2016 the bank partnered with prepaid card solutions provider Prepaid Financial Services to launch a prepaid contactless program offering a contactless prepaid Mastercard card and mobile sticker.

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

In particular, this report enables the following analysis -

  • Current and forecast values for each market in the Slovenian 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.
  • Analysis of various market drivers and regulations governing the Slovenian 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: NLB, Nova KBM, Intesa Sanpaolo Bank, SKB, Abanka Vipa, Visa, Mastercard, Karanta, American Express, Diners Club.

Scope
  • Contactless payments are slowly gaining traction in Slovenia, as banks are increasingly offering contactless payment options to consumers. Most recently, in March 2016 NLB partnered with prepaid card solutions provider Prepaid Financial Services to launch a contactless prepaid Mastercard card and mobile sticker. NLB was the first bank in Slovenia to offer contactless payments, launching the technology in November 2014. Nova KBM started offering Visa and Mastercard contactless payment cards to its customers from February 2015. These cards can be used to make contactless payments without entering a PIN if the transaction is less than $15.78 (€15).
  • Contactless payments are also entering the country’s transport sector. For instance, the Urbana mobile app was launched in April 2016, and can be used to top up the Urbana card - a prepaid card for electronic ticketing. The app can also be used to make contactless payments for Ljubljanski potniski promet (LPP) bus rides and check bus schedules, the card’s balance, and its validity. The app is available to customers of all mobile operators and works on Android mobile phones with NFC connectivity. City bus operator LPP offers the Urbana card at LPP ticket offices and Ljubljana bus station. The card can be used for an unlimited number of rides on all city bus routes, and also as a membership card for the Ljubljana City Library.
  • International scheme providers such as Visa and Mastercard dominate the country’s payment card market. In a bid to benefit from the lucrativeness of the market, Chinese scheme provider UnionPay International signed an agreement with Intesa Sanpaolo Bank in January 2016. The agreement allows Chinese tourists visiting Slovenia to withdraw cash from ATMs in the country using UnionPay cards. The agreement also allows consumers to use UnionPay cards at local merchants, particularly shopping malls and supermarkets.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Slovenian cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Slovenian cards and payments industry.
  • Assess the competitive dynamics in the Slovenian cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Slovenia.
  • Gain insights into key regulations governing the Slovenian cards and payments industry.


  • Executive Summary
    • Market overview
    • Key facts
      • Table Slovenia: key facts, 2016
      • Table Slovenia: regional benchmarking of payment cards, 2016
    • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: Slovenia: payment instrument shares by transaction value (%), 2012 vs 2016
      • Table Figure 2: Slovenia: payment instrument shares by transaction volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-commerce market analysis
      • Table Figure 3: Slovenia: e-commerce market value, 2012–20f
    • Alternative payment solutions
      • PayPal
      • Intesa Sanpaolo Bank – QL and Wave2Pay
      • Skrill Digital Wallet
      • Moneta
      • Fondy
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
      • SEPA cards framework
    • Anti-money laundering
    • Foreign direct investment (FDI) regulations
      • Table Slovenia: mode of entry of foreign banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: Slovenia: population and economic indicators
    • Table Figure 5: Slovenia: ATMs, POS terminals and household consumption
  • Payment Cards
    • Table Figure 6: Slovenia: payment card transaction value and cards in circulation, 2012–20f
  • Debit Cards
    • Debit card market analysis
      • Table Figure 7: Slovenia: debit card penetration and turnover per card
    • Competition in the debit card market
      • Table Figure 8: Slovenia: debit card scheme and issuer transaction value shares, 2016
    • Debit card comparison
      • Table Slovenia: debit card comparison and key features, 2016
  • Pay-later Cards
    • Pay-later card market analysis
      • Table Figure 9: Slovenia: pay-later card penetration and turnover per card
    • Competition in the pay-later card market
      • Table Figure 10: Slovenia: pay-later card scheme and issuer transaction value shares, 2016
    • Pay-later card comparison
      • Table Slovenia: gold credit card comparison and key features, 2016
  • Prepaid Cards
    • Table Figure 11: Slovenia: prepaid cards in circulation (000s) and transaction value ($m), 2012–20f
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Slovenia: payment instrument transaction values (€m), 2012–16e
      • Table Slovenia: payment instrument transaction values ($m), 2012–16e
      • Table Slovenia: payment instrument transaction volumes (millions), 2012–16e
      • Table Slovenia: payment cards in circulation by type (000s), 2012–20f
      • Table Slovenia: volume of payment card transactions (millions), 2012–20f
      • Table Slovenia: value of payment card transactions (€bn), 2012–20f
      • Table Slovenia: value of payment card transactions ($bn), 2012–20f
      • Table Slovenia: debit cards in circulation (millions), 2012–20f
      • Table Slovenia: debit card transaction volumes, 2012–20f
      • Table Slovenia: debit card transaction values (€), 2012–20f
      • Table Slovenia: debit card transaction values ($), 2012–20f
      • Table Slovenia: debit cards in circulation by scheme (000s), 2012–16e
      • Table Slovenia: debit card transaction values by scheme (€m), 2012–16e
      • Table Slovenia: debit card transaction values by scheme ($m), 2012–16e
      • Table Slovenia: debit card transaction values by issuer (€m), 2012–16e
      • Table Slovenia: debit card transaction values by issuer ($m), 2012–16e
      • Table Slovenia: pay-later cards in circulation (000s), 2012–20f
      • Table Slovenia: pay-later card transaction volumes, 2012–20f
      • Table Slovenia: pay-later card transaction values (€), 2012–20f
      • Table Slovenia: pay-later card transaction values ($), 2012–20f
      • Table Slovenia: pay-later cards in circulation by scheme (000s), 2012–16e
      • Table Slovenia: pay-later card transaction values by scheme (€m), 2012–16e
      • Table Slovenia: pay-later card transaction values by scheme ($m), 2012–16e
      • Table Slovenia: pay-later card transaction values by issuer (€m), 2012–16e
      • Table Slovenia: pay-later card transaction values by issuer ($m), 2012–16e
      • Table Slovenia: credit cards in circulation (000s), 2012–20f
      • Table Slovenia: credit card transaction volumes, 2012–20f
      • Table Slovenia: credit card transaction values (€), 2012–20f
      • Table Slovenia: credit card transaction values ($), 2012–20f
      • Table Slovenia: credit cards in circulation by scheme (000s), 2012–16e
      • Table Slovenia: credit card transaction values by scheme (€m), 2012–16e
      • Table Slovenia: credit card transaction values by scheme ($m), 2012–16e
      • Table Slovenia: charge cards in circulation (000s), 2012–20f
      • Table Slovenia: charge card transaction volumes, 2012–20f
      • Table Slovenia: charge card transaction values (€), 2012–20f
      • Table Slovenia: charge card transaction values ($), 2012–20f
      • Table Slovenia: charge cards in circulation by scheme (000s), 2012–16e
      • Table Slovenia: charge card transaction values by scheme (€m), 2012–16e
      • Table Slovenia: charge card transaction values by scheme ($m), 2012–16e
      • Table Slovenia: prepaid cards in circulation (000s), 2012–20f
      • Table Slovenia: prepaid card transaction values (€m), 2012–20f
      • Table Slovenia: prepaid card transaction values ($m), 2012–20f
    • Definitions
      • Table Key definitions
    • Methodology
    • Bibliography
    • Further reading

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