Payments Landscape in Slovenia: Opportunities and Risks to 2022
Cash still remains the preferred method of payment in Slovenia, accounting for 52.9% of total payment transaction volume in 2018. Cash is mainly used for day-to-day low-value transactions. But with government initiatives to improve financial literacy, growing consumer awareness of and confidence in digital payments, the advent of digital-only banks, and an improving payment infrastructure, Slovenian consumers are gradually shifting towards electronic payments.
Introduction of an EU-wide cap on interchange fees has encouraged payment card acceptance among Slovenian merchants. The rising adoption of contactless cards enables consumers to easily make low-value transactions of up to €15 ($17.18), while healthy e-commerce growth is expected to further push electronic payments in the country over the forecast period (2018e-22f).
Debit cards remain the preferred card type among Slovenians, with penetration of 131.5 debit cards per 100 individuals in 2018. Debit cards are increasingly being used for payments, and accounted for 75.1% of total card payment volume in 2018. The frequency of debit card payments also increased from 38.5 in 2014 to 54.6 in 2018 at a compound annual growth rate (CAGR) of 9.1%, mainly supported by the growing preference for contactless payments, as well as Slovenian banks encouraging customers to use debit cards by offering reward points and discounts.
Charge cards exceed credit cards in terms of the number of cards in circulation, transaction volume, value, and frequency of use, reflecting the debt-averse nature of Slovenian consumers and their general preference for paying off outstanding balances by the end of the interest-free period. However, credit cards recorded faster growth than charge cards on all counts. Banks have taken steps to encourage uptake by offering installment facilities, reward programs, discounts, and cashback.
The Slovenian e-commerce market registered robust growth, increasing from €183.8m ($210.6m) in 2014 to €289.1m ($331.18m) in 2018. Growing internet and smartphone penetration, a rise in online shoppers, and increased consumer purchasing power have supported this growth. Online shopping events such as Black Friday and Cyber Monday are also playing their part in e-commerce growth. The availability of alternative payment solutions such as PayPal and paysafecard is further expected to drive e-commerce growth over the forecast period.
The report Payments Landscape in Slovenia: Opportunities and Risks to 2022, provides detailed analysis of market trends in the Slovenian 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 -
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