Payments Landscape in Slovakia: Opportunities and Risks to 2021
Cash remains the dominant payment instrument in Slovakia, accounting for over 65% of total payment transaction volume in 2017. Cash is mainly used for day-to-day, low-value transactions. Despite the dominance of cash, consumers are gradually shifting towards card-based payments, supported by government financial inclusion initiatives, restrictions on cash transactions, and improvements to the payment infrastructure.
Debit cards remain the preferred payment card in Slovakia. Government efforts to promote financial inclusion and digital awareness have accelerated debit card penetration and usage in the country. The gradual migration of low-value cash payments to debit cards has been supported by the increasing acceptance of contactless payments at retail outlets. All major Slovakian banks now offer contactless debit cards.
Pay-later market accounted for just 5.8% of total payment card transaction value in 2017. However, it did register faster review-period growth than debit cards both in terms of transaction value and volume. The revival of the economy, increased household income and spending, and banks offering various benefits have helped drive the growth of the pay-later market.
E-commerce in Slovakia recorded strong growth during the review period, increasing in value from around €320m ($384m) in 2013 to about €546m ($655m) in 2017 at a compound annual growth rate (CAGR) of more than 14%. The growth has been supported by rising smartphone penetration and an increased number of online shoppers. Alternative payment solutions such as PayPal and Masterpass are also used for online payments.
The report Payments Landscape in Slovakia: Opportunities and Risks to 2021, provide top-level market analysis, information and insights into the Slovakian cards and payments industry, including -
Companies mentioned in this report:
- Current and forecast values for each market in the Slovakian cards and payments industry, including debit, credit, and charge cards.
- Detailed insights into payment instruments including credit transfers, direct debit, cheques, cash, 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 Slovakian cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
Slovenskásporiteľňa, CSOB, VUB Banka, UniCredit Bank, Raiffeisen Bank, TrustPay, PayPal, Tatrabanka, Visa, and Mastercard.Scope
Reasons to buy
- Contactless technology is gaining traction in Slovakia, with all leading banks in the country now offering cards with contactless functionality. To benefit from the growing adoption of contactless, banks in Slovakia are also launching contactless mobile payment services. The latest of these is the November 2016 expansion of Tatra banka’s MobilePay app in collaboration with Visa. The solution allows users to store their debit and credit cards within the app and make contactless payments at partnered merchants using their mobile phone.
- Payment service providers are launching innovative solutions to offer convenient payments. To promote electronic fund transfers, in August 2017 PayPal partnered with Skype to allow its users to send and receive money through the Skype app. The service was launched in over 20 countries, including Slovakia. In December 2015, Mastercard collaborated with CSOB to launch Masterpass in Slovakia. The payment solution allows users to pay from a list of pre-stored card and shipping information. The service offers merchants a faster and easier way to process payments and helps decrease checkout abandonment rates.
- The advent of mobile-only banks is likely to accelerate a shift towards electronic payments in Slovakia. Germany-based bank N26 launched a mobile-only bank in Slovakia in December 2015, allowing consumers to conduct banking transactions via their mobile phones. Account holders are offered a prepaid Mastercard that can be used to make payments in stores and online. In June 2017, 365 Bank - a Slovakia-based mobile-only bank - announced plans to launch its banking operations in early 2018.
- Make strategic business decisions, using top-level historic and forecast market data, related to the Slovakian cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Slovakian cards and payments industry.
- Assess the competitive dynamics in the Slovakian cards and payments industry.
- Gain insights into marketing strategies used for various card types in Slovakia.
- Gain insights into key regulations governing the Slovakian cards and payments industry.
- Market Overview
- Executive Summary
- Card-based Payments
- E-commerce Payments
- Alternative Payments
- Payments Infrastructure & Regulation