Hungary’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Hungarian GDP contracted by -6.8% in 2009, impacting the overall banking and financial services industry. The economy recovered in 2010 and 2011, but contracted again in 2012. However, it is expected to record robust growth over the forecast period, with real GDP growth rising from 1.26% in 2014 to 1.61% in 2018. Improved GDP growth, rising per capita income and low inflation are expected to raise consumer confidence and increase spending, resulting in an increased scope for card-based transactions. This will be further supported by rising online and mobile penetration, and the emergence of Europay, MasterCard and Visa (EMV) cards, near-field communication (NFC) technology, and mobile wallets.

The Hungarian card payments channel registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 1.49% to reach 9.0 million cards in circulation by the end of 2013. In value terms, the card payments channel valued HUF8.1 trillion (US$36.2 billion) in 2013. The debit cards category held the highest share with 85.7% of the cards in circulation in 2013. It is expected maintain the highest share of the overall payments channel and record a forecast-period (2014–2018) CAGR of 1.57%, rising from 7.8 million cards in 2014 to 8.3 million in 2018. The credit cards category had the second-largest share with 13.5% in 2013, followed by prepaid cards with 0.6%. Over the forecast period, the number of prepaid cards is expected to increase from 72,964 in 2014 to 216,724 in 2018, at a CAGR of 31.28%. The charge card category held the smallest industry share of 0.2% in 2013.

Scope

• This report provides a comprehensive analysis of Hungary’s cards and payments industry.

• It provides current values for Hungary’s cards and payments industry for 2012, and forecast figures for 2017.

• It details the different economic, infrastructural and business drivers affecting Hungary’s cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details the marketing strategies used by various banks and other institutions.

• It profiles the major banks in Hungary’s cards and payments industry.

Key Highlights

• The Hungarian card payments channel registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 1.49% to reach 9.0 million cards in circulation by the end of 2013. In value terms, the card payments channel valued HUF8.1 trillion (US$36.2 billion) in 2013. The debit cards category held the highest share with 85.7% of the cards in circulation in 2013. It is expected maintain the highest share of the overall payments channel and record a forecast-period (2014–2018) CAGR of 1.57%, rising from 7.8 million cards in 2014 to 8.3 million in 2018.

• The emergence of NFC has encouraged card use in Hungary. Since 2011, the Cetelem Bank in Hungary has offered the contactless MasterCard PayPass facility for small purchases of up to HUF5,000 (US$25). This enables card payments without entering or passing a card through a POS terminal, entering a PIN, or signing a merchant receipt. NFC technology can be incorporated in mobile devices with have an NFC interface, enabling them to function as contactless payment solutions. Magyar Telekom, Telenor and Vodafone in Hungary with OTP Bank, Master Card and loyalty systems provider SuperShop have tested platforms to facilitate contactless mobile payments, and the range of services offered is widening to include live event tickets and access to sports facilities.

• Growth of e-commerce is expected to increase the scope for card-based payments over the forecast period. The value of e-commerce in Hungary grew from HUF97.5 billion (US$8.8 billion) in 2009 to HUF255.5 billion (US$12.5 billion) in 2013, at a CAGR of 27.24%. The number of e-commerce outlets that accept Visa and MasterCard also rose. During review period, retail sales grew at a CAGR of 2.83%, and this is expected to expand the scope of card-based payments. Growing internet penetration and rising consumer confidence in online transactions fuelled the growth of e-commerce. The number of internet users per 100 inhabitants in Hungary grew from 62.0 in 2009 to 74.3 in 2013. Over the forecast period, the figure is expected to rise from 76.9 in 2014 to 90.3 in 2018.

• The prepaid cards category was very much neglected with very few number of gift card issued and held very low market share with 0.6% of cards in circulation in 2013. The issuance of festive cards, meal vouchers, leisure vouchers, health cards and closed loop gift cards have given a large push to prepaid cards in circulation. The growth in the transaction volume of prepaid cards is also expected to grow as POS infrastructure improves and many sectors have adopted prepaid payments services. The prepaid cards category accounted for the highest growth during the review period, and is also expected to do so over the forecast period due to aggressive card issuance.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to Hungary’s cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities within Hungary’s cards and payments industry.

• Assess the competitive dynamics in Hungary’s cards and payments industry.

• Gain insights in to the marketing strategies used for selling various card types in Hungary.

• Gain insights into key regulations governing Hungary’s cards and payments industry.

Companies mentioned

Magyar Cetelem Bank

OTP Bank

UniCredit Bank Hungary

Kereskedelmi és Hitelbank

Citibank

MasterCard

Visa

Table of Contents

1 Executive Summary

2 Analysis of the Industry Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technology

2.1.1 Automatic Teller Machines (ATMs)

2.1.2 Point of sale (POS) terminals

2.1.3 Internet penetration

2.1.4 Contactless technology

2.1.5 EMV

2.1.6 Mobile payments (m-payments)

2.2 Business Drivers

2.2.1 Growth of e-commerce

2.2.2 Retail sales value

2.3 Economic Drivers

2.3.1 Nominal GDP per capita

2.3.2 Real GDP growth

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Cash

3.1.2 Direct debits

3.1.3 Credit transfers

3.1.4 Cards

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 SEPA cards framework

4.1.2 Anti-money laundering (AML) framework

4.1.3 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present fraud

4.2.2 Counterfeit card fraud

4.2.3 Lost or stolen card fraud

4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends

5.1 Market Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourists volume

5.2.2 Outbound tourist spending

5.3 Retail Card Spending

5.3.1 Analysis by product categories

5.3.2 Analysis by retail channels

6 Analysis of Card Payments and Growth Prospects

6.1 Channel Share Analysis by Card Category

6.2 Size and Forecast of the Card Payments Channel

6.2.1 Analysis by Volume of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects

7.1 Overall Category Size and Forecast

7.1.1 Analysis by volume of cards in circulation

7.1.2 Analysis by transaction value

7.1.3 Analysis by transaction volume

7.2 Transaction Share Analysis by Channel

7.2.1 Analysis by transaction value

7.2.2 Analysis by transaction volume

7.3 Personal Credit Cards Size and Forecast

7.3.1 Analysis by volume of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Size and Forecast

7.4.1 Analysis by number of cards in circulation

7.4.2 Analysis by transaction value

7.4.3 Analysis by transaction volume

7.5 Competitive Landscape

7.5.1 Scheme share analysis

7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects

8.1 Overall Category Size and Forecast

8.1.1 Analysis by volume of cards in circulation

8.1.2 Analysis by transaction value

8.1.3 Analysis by transaction volume

8.2 Transaction Share Analysis by Channel

8.2.1 Analysis by transaction value

8.2.2 Analysis by transaction volume

8.3 Competitive Landscape

8.3.1 Scheme share analysis

8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects

9.1 Overall Category Size and Forecast

9.1.1 Analysis by volume of cards in circulation

9.1.2 Analysis by transaction value

9.1.3 Analysis by transaction volume

9.2 Transaction Share Analysis by Channel

9.2.1 Analysis by transaction value

9.2.2 Analysis by transaction volume

9.3 Personal Charge Cards Size and Forecast

9.3.1 Analysis by number of cards in circulation

9.3.2 Analysis by transaction value

9.3.3 Analysis by transaction volume

9.4 Commercial Charge Cards Size and Forecast

9.4.1 Analysis by volume of cards in circulation

9.4.2 Analysis by transaction value

9.4.3 Analysis by transaction volume

9.5 Competitive Landscape

9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects

10.1 Overall Category Size and Forecast

10.1.1 Analysis by volume of cards in circulation

10.1.2 Analysis by transaction value

10.2 Open-Loop Prepaid Cards Segment Size and Forecast

10.2.1 Analysis by number of cards in circulation

10.2.2 Analysis by transaction value

10.3 Closed-Loop Prepaid Cards Segment Size and Forecast

10.3.1 Analysis by volume of cards in circulation

10.3.2 Analysis by transaction value

11 Merchant Acquiring

12 Company Profiles of Card Issuers

12.1 Magyar Cetelem Bank

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 OTP Bank

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 UniCredit Bank Hungary

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Kereskedelmi és Hitelbank

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 Citibank

12.5.1 Key financials

12.5.2 Card portfolio

12.5.3 Strategies

13 Appendix

13.1 Methodology

13.2 Contact GlobalData

13.3 About GlobalData

13.4 GlobalData’s Services

13.5 Definitions

13.6 Disclaimer

List of Tables

Table 1: Hungarian Payment Channels (HUF Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks in Hungary

Table 3: Hungarian Card Fraud (HUF Million), 2009–2013

Table 4: Cards for Leisure Travelers

Table 5: Cards for Vehicle Owners

Table 6: Cards for Children’s and Young Population

Table 7: Cards for Affluent

Table 8: Cards for SMEs

Table 9: Cards for Business Travelers

Table 10: Hungarian Card Spending by Retail Product Category (HUF Billion), 2008 and 2012

Table 11: Hungarian Card Spending by Retail Channel (HUF Billion), 2008 and 2012

Table 12: Hungary Card Payments Channel by Card Category (Thousand), 2009–2018

Table 13: Hungarian Card Payments Channel Size by Volume of Cards (Thousand), 2009–2018

Table 14: Hungarian Card Payments Channel Size by Transaction Value (HUF Trillion), 2009–2018

Table 15: Hungarian Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 16: Hungarian Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 17: Hungarian Credit Cards Category Size by Transaction Value (HUF Billion), 2009–2018

Table 18: Hungarian Credit Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 19: Hungarian Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 20: Hungarian Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 21: Hungarian Personal Credit Cards Segment Size by Transaction Value (HUF Billion), 2009–2018

Table 22: Hungarian Personal Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 23: Hungarian Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 24: Hungarian Commercial Credit Cards Segment Size by Volume of Cards, 2009–2018

Table 25: Hungarian Commercial Credit Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Table 26: Hungarian Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 27: Hungarian Commercial Credit Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Table 28: Hungarian Debit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 29: Hungarian Debit Cards Category Size by Transaction Value (HUF Trillion), 2009–2018

Table 30: Hungarian Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 31: Hungarian Debit Cards Category Size by Transactions Volume (Million), 2009–2018

Table 32: Hungarian Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 33: Hungarian Charge Cards Category Size by Transaction Value (HUF Billion), 2009–2018

Table 34: Hungarian Charge Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 35: Hungarian Charge Cards Category Size by Transactions Volume (Thousand), 2009–2018

Table 36: Hungarian Personal Charge Cards Segment Size by Volume of Cards, 2009–2018

Table 37: Hungarian Personal Charge Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Table 38: Hungarian Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 39: Hungarian Personal Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 40: Hungarian Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 41: Hungarian Commercial Charge Cards Segment Size by Transaction Value (HUF Billion), 2009–2018

Table 42: Hungarian Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 43: Hungarian Commercial Charge Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Table 44: Hungarian Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 45: Hungarian Prepaid Cards Category Size by Transaction Value (HUF Million), 2009–2018

Table 46: Hungarian Prepaid Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 47: Hungarian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 48: Hungarian Open-Loop Prepaid Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Table 49: Hungarian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 50: Hungarian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 51: Hungarian Closed-Loop Prepaid Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Table 52: Hungarian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Thousand), 2009–2018

Table 53: BNP Paribas Group – Key Financial Indicators (EUR Billion), 2011 and 2012

Table 54: Magyar Cetelem Bank – Card Product Offerings and Key Features

Table 55: OTP Bank – Key Financial Indicators (HUF Billion), 2011 and 2012

Table 56: OTP Bank – Card Product Offerings and Key Features

Table 57: UniCredit Bank Hungary– Key Financial Indicators (HUF Billion), 2011 and 2012

Table 58: UniCredit Bank Hungary – Card Product Offerings and Key Features

Table 59: K&H Bank – Key Financial Indicators (HUF Billion), 2011 and 2012

Table 60: K&H Bank – Card Product Offerings and Key Features

Table 61: Citibank – Key Financial Indicators (HUF Billion), 2011 and 2012

Table 62: Citibank – Card Product Offerings and Key Features

Table 63: Key Definitions

List of Figures

Figure 1: Benchmarking the Hungarian Payment Cards Channel Against Other Markets in Europe

Figure 2: Hungary – Growth of Various Card Categories (%), 2009–2018

Figure 3: Hungarian ATMs – Penetration, 2009–2018

Figure 4: Hungarian POS Terminals – Penetration, 2009–2018

Figure 5: Hungarian Internet Penetration (Internet Users per 100 Inhabitants) (%), 2009–2018

Figure 6: Hungarian EMV Category Size by Number of Cards (Million), 2008–2012

Figure 7: Hungarian M-Payment Value (HUF Billion), 2009–2018

Figure 8: Hungarian E-Commerce Value (HUF Billion), 2009–2018

Figure 9: Retail Sales Value in Hungary (HUF Trillion), 2009–2018

Figure 10: Hungarian Nominal GDP Per Capita (US$ Thousand), 2009–2018

Figure 11: Hungarian Real GDP Growth Rate (%), 2009–2018

Figure 12: Hungarian Inflation (Consumer Price Inflation) Rate (%), 2009–2018

Figure 13: Shares of Hungarian Payment Channels (%), 2009 and 2013

Figure 14: Shares of Various Types of Card Fraud in Hungary (%), 2009 and 2013

Figure 15: Hungarian Card-Not-Present Fraud Value (HUF Million), 2009–2013

Figure 16: Hungarian Counterfeit Card Fraud Value (HUF Million), 2009–2013

Figure 17: Hungarian Lost or Stolen Card Fraud Value (HUF Million), 2009–2013

Figure 18: Hungarian Card ID Theft Value (HUF Million), 2009–2013

Figure 19: Hungarian Cards and payments industry Segmentation by Card Type

Figure 20: Volume of Hungarian Outbound Trips (Million), 2009–2018

Figure 21: Hungarian Outbound Tourist Spending (HUF Billion), 2009–2018

Figure 22: Hungarian Card Spending by Retail Product Category (%), 2012

Figure 23: Hungarian Card Spending by Retail Channel (%), 2012

Figure 24: Hungarian Card Payments Channel by Card Category (%), 2009–2018

Figure 25: Hungarian Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 26: Hungarian Card Payments Channel Size by Transaction Value (HUF Trillion), 2009–2018

Figure 27: Hungarian Credit Cards Volume and Penetration, 2009–2018

Figure 28: Hungarian Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 29: Hungarian Credit Cards Category Size by Transaction Value (HUF Billion), 2009–2018

Figure 30: Hungarian Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 31: Hungarian Credit Card Transactions Value by Channel (HUF Billion), 2009–2018

Figure 32: Hungarian Credit Card Transactions Volume by Channel (Million), 2009–2018

Figure 33: Hungarian Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 34: Hungarian Personal Credit Cards Segment Size by Transaction Value (HUF Billion), 2009–2018

Figure 35: Hungarian Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 36: Hungarian Commercial Credit Cards Segment Size by Volume of Cards, 2009–2018

Figure 37: Hungarian Commercial Credit Cards Segment Size by Transaction Value (HUF Billion), 2009–2018

Figure 38: Hungarian Commercial Credit Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Figure 39: Hungarian Credit Cards Category Shares by Scheme (%), 2012

Figure 40: Hungarian Credit Cards Category Shares by Issuer (%), 2012

Figure 41: Hungarian Debit Cards Category Volume and Penetration, 2009–2018

Figure 42: Hungarian Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 43: Hungarian Debit Cards Category Size by Transaction Value (HUF Trillion), 2009–2018

Figure 44: Hungarian Debit Cards Category Size by Transactions Volume (Million), 2009–2018

Figure 45: Hungarian Debit Cards Category Transactions Value by Channel (HUF Trillion), 2009–2018

Figure 46: Hungarian Debit Card Transactions Volume by Channel (Million), 2009–2018

Figure 47: Hungarian Debit Cards Category Share by Scheme (%), 2012

Figure 48: Hungarian Debit Cards Category Shares by Issuer (%), 2012

Figure 49: Hungarian Charge Cards Category Volume and Penetration, 2009–2018

Figure 50: Hungarian Charge Card Category Size by Volume of Cards (Thousand), 2009–2018

Figure 51: Hungarian Charge Cards Category Size by Transaction Value (HUF Billion), 2009–2018

Figure 52: Hungarian Charge Cards Category Size by Transactions Volume (Thousand), 2009–2018

Figure 53: Hungarian Charge Card Transactions Value by Channel (HUF Billion), 2009–2018

Figure 54: Hungarian Charge Card Transactions Volume by Channel (Thousand), 2009–2018

Figure 55: Hungarian Personal Charge Cards Segment Size by Volume of Cards, 2009–2018

Figure 56: Hungarian Personal Charge Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Figure 57: Hungarian Personal Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 58: Hungarian Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 59: Hungarian Commercial Charge Cards Segment Size by Transaction Value (HUF Billion), 2009–2018

Figure 60: Hungarian Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 61: Hungary Charge Cards Category Share by Scheme (%), 2012

Figure 62: Hungarian Prepaid Cards Category Volume and Penetration, 2009–2018

Figure 63: Hungarian Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 64: Hungarian Prepaid Cards Category Size by Transaction Value (HUF Billion), 2009–2018

Figure 65: Hungarian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 66: Hungarian Open-Loop Prepaid Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Figure 67: Hungarian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 68: Hungarian Closed-Loop Prepaid Cards Segment Size by Transaction Value (HUF Million), 2009–2018

Figure 69: Hungarian Merchant Acquirers – Market Shares (%), 2012

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