Payments Landscape in Austria: Opportunities and Risks to 2022
The use of payment cards has been growing in line with rising awareness of electronic payments and an increase in the country’s banked population. Most Austrian consumers are now banked, and card penetration stood at 1.5 cards per individual in 2018. Debit cards are the most popular card type, and are also increasingly being used for payments, as consumers are gradually switching to debit cards for low-value transactions. However, cash remains the preferred payment instrument in Austria, accounting for 44.8% of the total payment transaction volume in 2018.
Debit cards are most popular card type, with every Austrian holding at least one. High banking penetration, the debt-averse nature of Austrian consumers and the combined efforts of banks and government bodies to promote electronic payments and financial inclusion have led to their strong adoption. The frequency of debit card payments increased, registering a healthy review-period CAGR of 8.2%, going from 47.8 times per card in 2014 to 65.5 times in 2018. Meanwhile, the average transaction value for debit card payments declined from €49.1 ($56.28) in 2014 to €41.0 ($46.99) in 2018, suggesting that consumers are gradually using debit cards for low-value payments.
Credit and charge cards are not very popular in Austria, with penetration standing at 39.6 cards per 100 individuals in 2018. Austrians are not prolific users of credit and charge cards. This is evident from the fact that credit and charge payment transaction value accounted for 38.0% of the total payment transaction value in 2018. The debt-averse nature of consumers, as well as banks offering overdraft facilities on bank accounts, limited the scope of credit card adoption in the country. Charge cards are preferred, as Austrians tend to settle total outstanding amounts in full at the end of the repayment date to avoid falling into debt.
The Austrian e-commerce market is currently in a growth phase, increasing from €6.5bn ($7.4bn) in 2014 to €9.8bn ($11.3bn) in 2018, at a review-period CAGR of 10.9%. A number of banks and card issuers are offering customized cards for online shopping. The growing adoption of e-commerce in Austria can be attributed to increasing confidence in e-commerce among both merchants and consumers. The availability of various payment options also helped in promoting e-commerce purchases in the country.
The report Payments Landscape in Austria: Opportunities and Risks to 2022, provides detailed analysis of market trends in the Austrian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, direct debit, and cheques during the review-period (2014-18e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018e-22f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.
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