Payments Landscape in Greece: Opportunities and Risks to 2022
Greece was severely affected by the Eurozone crisis, due to government overspending, tax evasion and a budget deficit that eventually spiraled out of control. To revive the economy, the country received conditional bailout packages from the International Monetary Fund (IMF), the EU and the European Central Bank; as a result, it had to enact a number of capital control measures in June 2015 to arrest the outward flow of money, curb tax evasion, encourage electronic payments, restrict cash withdrawals at ATMs and introduce the compulsory acceptance of card-based payments by retailers, as well as certain categories of professionals such as doctors, lawyers, electricians and plumbers.
Consequently, there was a rise in the use of electronic payments; this is evident from the fact that the number of card payment transactions recorded a significant review-period CAGR of 68.2%. Debit cards are the most popular card type, with every Greek consumer owning at least one, and are also increasingly being used for payments, as consumers are gradually switching to debit cards for low-value transactions. High banking penetration and the combined efforts of banks and government bodies to promote electronic payments and financial inclusion have led to its strong adoption. Consequently, debit card payments’ transaction volume, value and frequency of use grew at significant respective review-period CAGRs of 103.8%, 84.1% and 88.6%.
Credit and charge cards are not very popular in Greece; its penetration stood at 33.5 cards per 100 individual in 2018. Amid uncertain economic conditions and growing unemployment, banks were forced to adopt a cautious approach to issuing credit cards. This resulted in a decline in the number of credit and charge cards issued up to 2015. However, with capital infusion and strict austerity measures adopted by the government in 2015, the economy and the banking sector are gradually on a path to recovery.
The Greek e-commerce market is currently in a growth phase, increasing from €3.3bn ($3.7bn) in 2014 to €5.2bn ($5.9bn) in 2018, at a review-period CAGR of 12.2%. Factors contributing to this growth included the availability of wide range of products and services and discounted prices offered by online retailers that helped serve price-sensitive consumers in Greece. Furthermore, the availability of various payment options including virtual cards and alternative payment solutions (PayPal, Viva Wallet, paysafecard, Masterpass) also helped in promoting e-commerce purchases in the country.
The report Payments Landscape in Greece: Opportunities and Risks to 2022, provides detailed analysis of market trends in the Greek 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.
The report provides -
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook