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Payments Landscape in the Czech Republic: Opportunities and Risks to 2021

Payments Landscape in the Czech Republic: Opportunities and Risks to 2021

Summary

Cash remains the preferred method of consumer payment, accounting for over 65% of total transaction volume in 2017. Consumers generally use cash for day-to-day, low-value transactions. However, its use declined during the review period due to a growing preference for payment cards and an increase in contactless transactions. The total number of payment card transactions recorded a strong review-period compound annual growth rate (CAGR) of more than 17% from about 542 million in 2013 to more than 1 billion in 2017. The government’s financial inclusion initiatives, increased consumer confidence, and improved payment infrastructure all helped drive this growth. The advent of contactless technology and a robust e-commerce market also supported the growth of the payment card market. The frequency of payment card use increased while average transaction value decreased from CZK1, 747.70 (about $82) in 2013 to CZK1,277.70 (around $60) in 2017 as a result of the migration of low-value cash payments to payment cards.

The report Payments Landscape in the Czech Republic: Opportunities and Risks to 2021, provides detailed analysis of market trends in the Czech Republic's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, direct debit, credit transfers, payment cards, and cheques during the review-period (2013-17e).

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 (2017-21f). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

Companies mentioned in this report: Ceskasporitelna, Erste Bank, ČSOB, KBC Bank, Komerčníbanka, SocieteGenerale Group, MONETA Money Bank, Raiffeisen Bank , Visa, Mastercard, and Diners Club.

Scope

  • In December 2017, Czech National Bank (the country’s central bank) announced a plan to introduce a nationwide instant fund transfer system by the end of 2018. The system will enable Czech individuals to transfer up to CZK400,000 ($18,792.09) instantly 24 hours a day, seven days a week, 365 days a year. According to the central bank, approximately one third of banks operating within the country were keen to participate in the project as of December 2017. The test phase will begin in the second half of 2018.
  • To capitalize on the growing acceptance of alternative payment solutions in the country, Google launched Android Pay (now Google Pay) in November 2017, enabling consumers to conduct contactless in-store transactions via Android phones. The solution is compatible with Visa and Mastercard payment card offered by J&T Banka, mBank, Komerční banka, and MONETA Money Bank. In August 2016, Československá obchodní banka (ČSOB) collaborated with electronic payments provider SIA to launch the NaNákupy mobile wallet, allowing users to make NFC payments. In November 2016, Mastercard collaborated with Shell Czech Republic to enable customers to pay using the Masterpass QR code feature at Shell fuel stations.
  • The digital-only banking model is slowly entering the Czech market. In November 2017, Cetelem (a BNP Paribas Personal Finance brand) introduced mobile-only bank Hello bank!, which offers a comprehensive banking product portfolio, including a Mastercard-branded debit card. The emergence of digital-only banks is likely to further accelerate the growth of electronic payments.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Czech Republic's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Czech Republic's cards and payments industry.
  • Assess the competitive dynamics in the Czech Republic's cards and payments industry.
  • Gain insights into marketing strategies used for various card types in the Czech Republic.
  • Gain insights into key regulations governing the Czech Republic's cards and payments industry.


Market Overview
Card-based Payments
E-commerce Payments
Alternative Payments
Payments Infrastructure & Regulation
Appendix

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