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

Czech GDP contracted by -4.51% 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 1.48% in 2014 to 2.43% in 2018. Improved economic indicators, including GDP, rising per capita income and low inflation rates, are expected to support consumer confidence and increase spending, resulting in the increased scope of card-based transactions. This will be further supported by the rising online and mobile penetration, the emergence of EMV-enabled cards, and near field communication (NFC) technology. A number of innovations are taking place in the field of contactless payments and are being adopted by customers at a rapid rate.

The Czech card payments channel registered positive growth during the review period (2009–2013). The channel posted a CAGR of 5.46% and had 16.4 million cards in circulation in 2013. In value terms, the card payments channel valued CZK934.3 billion (US$48.0 billion) in 2013. The debit cards category held the highest share with 47.4% of cards in circulation in 2013. The debit cards category is expected to maintain the highest share of total payments, posting a CAGR of 1.29% over the forecast period (2014–2018); rising from 7.9 million cards in 2014 to 8.4 million in 2018. The prepaid cards category had the second-largest share with 37.3% in 2013, followed by credit cards with 13.7%. Over the forecast period, the number of prepaid cards in circulation is expected to increase from 6.5 million in 2014 to 7.7 million in 2018, at the highest forecast-period CAGR of 4.30%. The charge card category held the smallest share of 1.5% in 2013.

Scope

• This report provides a comprehensive analysis of the Czech Republic’s cards and payments industry.

• It provides current values for the Czech Republic’s cards and payments industry for 2013, and forecast figures for 2018.

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

Key Highlights

• The Czech card payments channel registered positive growth during the review period (2009–2013). The channel posted a CAGR of 5.46% and had 16.4 million cards in circulation in 2013. In value terms, the card payments channel valued CZK934.3 billion (US$48.0 billion) in 2013. The debit cards category held the highest share with 47.4% of cards in circulation in 2013. The debit cards category is expected to maintain the highest share of total payments, posting a CAGR of 1.29% over the forecast period (2014–2018); rising from 7.9 million cards in 2014 to 8.4 million in 2018.

• Stickers are a new innovation in the area of contactless payments. Contactless payment stickers are held in front of the payment terminal to make an automatic transaction, improving the convenience, speed and security of card payments. The adoption of contactless payments in the Czech Republic is supporting consumer acceptance of stickers. The number of contactless payments increased from 470,642 in 2011 to 1.5 million in 2013, and is expected to increase further at a high forecast-period CAGR of 27.2%.

• The SIM card launched by Komerční Banka, Visa Europe, Samsung and Telefónica in 2012 is an innovation in the area of mobile payments. The SIM card can be used to purchase products and services. The increasing capabilities of smartphone devices, a rise in mobile device applications and improved security measures for transactions have been instrumental in driving mobile commerce in the country. The rising volume of smartphones and increasing mobile internet penetration in the country, coupled with improved banking infrastructure, are expected to increase mobile commerce over the forecast period. The value of m-payments is expected to increase from CZK1.3 billion (US$68.2 million) in 2014 to CZK2.8 billion (US$143.7 million) in 2018, at a forecast-period CAGR of 20.54%.

Reasons to buy

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

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

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

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

• Gain insights into key regulations governing the Czech Republic’s cards and payments industry.

Companies mentioned

Citibank

Česká Spořitelna

Komerční Banka

Československá Obchodní Banka (CSOB)

UniCredit Bank Czech Republic and Slovakia

MasterCard

Visa

Table of Contents

1 Executive Summary

2 Analysis of Industry Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technologies

2.1.1 Automated teller machines (ATMs)

2.1.2 POS terminals

2.1.3 Internet penetration

2.1.4 Contactless technologies

2.1.5 Europay, MasterCard and Visa (EMV)

2.1.6 Mobile payments (m-payments)

2.2 Business Drivers

2.2.1 Growth of online 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 Checks

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 framework

4.1.3 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present

4.2.2 Counterfeit card

4.2.3 Lost or stolen card

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 tourist 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 number 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 number 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

9.5.2 Issuer 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 Citibank

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 Česká Spořitelna

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Komerční Banka

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Ceskoslovenska Obchodni Banka

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 UniCredit Bank Czech Republic and Slovakia

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: Czech Payment Channels (CZK Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks in the Czech Republic

Table 3: Czech Card Fraud (CZK Million), 2009–2013

Table 4: Cards for Frequent Travelers

Table 5: Cards for Vehicle Owners

Table 6: Cards for High-Income Customers

Table 7: Cards for Students and Young Population

Table 8: Cards for Corporate Customers

Table 9: Czech Card Spending by Product Category (CZK Billion), 2008 and 2012

Table 10: Czech Card Spending by Retail Channel (CZK Billion), 2008 and 2012

Table 11: Czech Republic Card Payments Channel by Card Category (Thousand), 2009–2018

Table 12: Czech Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Table 13: Czech Card Payments Channel Size by Transaction Value (CZK Billion), 2009–2018

Table 14: Czech Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 15: Czech Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 16: Czech Credit Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Table 17: Czech Credit Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 18: Czech Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 19: Czech Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 20: Czech Personal Credit Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Table 21: Czech Personal Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 22: Czech Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 23: Czech Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 24: Czech Commercial Credit Cards Segment Size by Transaction Value (CZK Million), 2009–2018

Table 25: Czech Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 26: Czech Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 27: Czech Debit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 28: Czech Debit Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Table 29: Czech Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 30: Czech Debit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 31: Czech Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 32: Czech Charge Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Table 33: Czech Charge Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 34: Czech Charge Cards Category Size by Transaction Volume (Million), 2009–2018

Table 35: Czech Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 36: Czech Personal Charge Cards Segment Size by Transaction Value (CZK Million), 2009–2018

Table 37: Czech Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 38: Czech Personal Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 39: Czech Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 40: Czech Commercial Charge Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Table 41: Czech Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 42: Czech Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 43: Czech Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018

Table 44: Czech Prepaid Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Table 45: Czech Prepaid Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 46: Czech Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Table 47: Czech Open-Loop Prepaid Cards Segment Size by Transaction Value (CZK Million), 2009–2018

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

Table 49: Czech Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Table 50: Czech Closed-Loop Prepaid Cards Segment Size by Transaction Value (CZK Million), 2009–2018

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

Table 52: Merchant Acquirer Outlets in the Czech Republic (Volume), 2013

Table 53: Citibank Europe Plc – Key Financial Indicators (US$ Million), Year Ending December, 2011 and 2012

Table 54: Citibank – Card Product Offerings and Key Features

Table 55: Česká Spořitelna – Key Financial Indicators (CZK Billion), Year Ending 2011 and 2012

Table 56: Česká Spořitelna – Card Product Offerings and Key Features

Table 57: Komerční Banka – Key Financial Indicators (CZK Billion), Year Ending December, 2012 and 2013

Table 58: Komerční Banka – Card Product Offerings and Key Features

Table 59: CSOB – Key Financial Indicators (CZK Billion), Year Ending December, 2011 and 2012

Table 60: CSOB – Card Product Offerings and Key Features

Table 61: UniCredit Bank – Key Financial Indicators (CZK Billion), Year Ending December, 2011 and 2012

Table 62: UniCredit Bank – Card Product Offerings and Key Features

Table 63: Key Definitions

List of Figures

Figure 1: Benchmarking the Czech Card Payments Channel Against Other Key Regional Markets

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

Figure 3: Czech ATMs Penetration, 2009–2018

Figure 4: Czech POS Terminals Penetration, 2009–2018

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

Figure 6: Czech Contactless Payment Value (Million), 2011–2018

Figure 7: Czech EMV Category Size by Number of Cards (Million), 2009–2018

Figure 8: Czech M-Payment Value (CZK Billion), 2009–2018

Figure 9: Czech E-Commerce Value (CZK Billion), 2009–2018

Figure 10: Czech Retail Sales Value (CZK Billion), 2009–2018

Figure 11: Czech Nominal GDP Per Capita (US$ Thousand), 2009–2018

Figure 12: Czech Real GDP Growth Rate (%), 2009–2018

Figure 13: Czech Inflation Rate (%), 2009–2018

Figure 14: Share of Czech Payment Channels (%), 2009 and 2013

Figure 15: Czech Card Fraud (%), 2009 and 2013

Figure 16: Czech Card-Not-Present Fraud Value (CZK Thousand), 2009–2013

Figure 17: Czech Counterfeit Card Fraud Value (CZK Million), 2009–2013

Figure 18: Czech Lost or Stolen Card Fraud Value (CZK Million), 2009–2013

Figure 19: Czech Card ID Theft Value (CZK Thousand), 2009–2013

Figure 20: Czech Cards and Payments Industry Segmentation by Card Type

Figure 21: Czech Volume of Outbound Trips (Million), 2009–2018

Figure 22: Czech Outbound Tourist Spending (CZK Billion), 2009–2018

Figure 23: Czech Card Spending by Product Category (%), 2012

Figure 24: Czech Card Spending by Retail Channel (%), 2012

Figure 25: Czech Card Payments Channel by Card Category (%), 2009–2018

Figure 26: Czech Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 27: Czech Card Payments Channel Size by Transaction Value (CZK Billion), 2009–2018

Figure 28: Czech Credit Cards Volume and Penetration, 2009–2018

Figure 29: Czech Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 30: Czech Credit Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Figure 31: Czech Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 32: Czech Credit Cards Transaction Value by Channel (CZK Billion), 2009–2018

Figure 33: Czech Credit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 34: Czech Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 35: Czech Personal Credit Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Figure 36: Czech Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 37: Czech Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 38: Czech Commercial Credit Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Figure 39: Czech Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 40: Czech Credit Cards Category Share by Scheme (%), 2012

Figure 41: Czech Credit Cards Category Share by Issuer (%), 2012

Figure 42: Czech Debit Cards Category Volume and Penetration, 2009–2018

Figure 43: Czech Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 44: Czech Debit Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Figure 45: Czech Debit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 46: Czech Debit Cards Category Transaction Value by Channel (CZK Billion), 2009–2018

Figure 47: Czech Debit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 48: Czech Debit Cards Category Share by Scheme (%), 2012

Figure 49: Czech Debit Cards Category Shares by Issuer (%), 2012

Figure 50: Czech Charge Cards Category Volume and Penetration, 2009–2018

Figure 51: Czech Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 52: Czech Charge Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Figure 53: Czech Charge Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 54: Czech Charge Cards Transaction Value by Channel (CZK Billion), 2009–2018

Figure 55: Czech Charge Cards Transaction Volume by Channel (Thousand), 2009–2018

Figure 56: Czech Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 57: Czech Personal Charge Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Figure 58: Czech Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 59: Czech Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 60: Czech Commercial Charge Cards Segment Size by Transaction Value (CZK Billion), 2009–2018

Figure 61: Czech Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 62: Czech Charge Cards Category Shares by Scheme (%), 2012

Figure 63: Czech Charge Cards Category Shares by Issuer (%), 2012

Figure 64: Czech Prepaid Cards Category Volume and Penetration, 2009–2018

Figure 65: Czech Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 66: Czech Prepaid Cards Category Size by Transaction Value (CZK Billion), 2009–2018

Figure 67: Czech Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 68: Czech Open-Loop Prepaid Cards Segment Size by Transaction Value (CZK Million), 2009–2018

Figure 69: Czech Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 70: Czech Closed-Loop Prepaid Cards Segment Size by Transaction Value (Million), 2009–2018

Figure 71: Market Shares of Key Acquirers in the Czech Republic (%), 2012

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