Payments Landscape in Slovakia: Opportunities and Risks to 2022
The introduction of an EU-wide cap on interchange fees has also encouraged payment card acceptance among merchants. The average annual spend per card in Slovakia is the highest, compared to peers including the Czech Republic, Russia, Hungary, Poland, Slovenia, Romania, Croatia and Bulgaria. However, cash remains the dominant payment instrument in Slovakia, accounting for 64.3% of total payment transaction volume in 2018. Cash is mainly used for day-to-day low-value transactions, though despite its dominance, consumers are gradually shifting towards card-based payments. The rise in card adoption is supported by government financial inclusion initiatives, restrictions on cash transactions and improvements to the payment infrastructure.
Debit cards remained the preferred card type among Slovakians, with a penetration of 83 debit cards per 100 individuals in 2018; this is mainly supported by the government’s financial inclusion initiatives. Debit cards are also increasingly being used for payments, accounting for 89.4% of the total card payments value in 2018. The frequency of payments by debit card registered significant growth, increasing from 56.9 in 2014 to 92.0 in 2018, at a CAGR of 12.7%.
Slovak consumers have embraced contactless technology, and it is being increasingly used for payments. According to the central bank, over 90% of the total payment cards were contactless in 2017, and 245.2 million contactless card payments worth €4.7bn ($5.4bn) were made during the year. Contactless acceptance is also high in the country, with over 80% of POS terminals supporting contactless.
Online shopping events such as Black Friday and Cyber Monday are also playing their part in the growth of e-commerce market. The availability of alternative payment solutions such as Google Pay, PayPal and Masterpass are further expected to drive e-commerce growth. The Slovak e-commerce market registered robust growth, increasing from €385.0m ($441.0m) in 2014 to €597.4m ($684.3m) in 2018, with electronics and media, clothing and footwear, and cosmetics being the popular purchase segments.
The report Payments Landscape in Slovakia: Opportunities and Risks to 2022, provides detailed analysis of market trends in the Slovakian 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 debits, 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 the 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 details of regulatory policy and recent changes in the 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