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

The Slovak economy remained resilient to the European sovereign debt crisis due to a sound banking system and prudent government spending. Ongoing government reforms in education, training, the labor market, taxation and infrastructure are likely to spur economic growth over the forecast period (2014–2019), which will have a direct impact on the Slovak cards and payments industry.

In terms of overall payment channels, credit transfers held the highest channel share of 85.3% in 2013, followed by direct debit with 12.4%. With consumers shifting to modern electronic payment systems, the channel share of card transactions increased from 1.4% in 2009 to 2.2% in 2013.

The Slovak card payments channel grew both in terms of volume and value during the review period (2009–2013). In terms of the number of cards in circulation, the channel increased during the review period, going from 5.1 million in 2009 to 5.7 million in 2013, at a compound annual growth rate (CAGR) of 2.83%. The card payments channel is anticipated to register a CAGR of 2.37% over the forecast period, to reach 6.5 million cards by the end of 2018.

In terms of transaction value, the card payments channel posted a review-period CAGR of 6.32%, rising from EUR16.5 billion (US$22.9 billion) in 2009 to EUR21.0 billion (US$27.9 billion) in 2013. This channel is expected to post a forecast-period CAGR of 3.97%, increasing from EUR22.1 billion (US$29.8 billion) in 2014 to EUR25.8 billion (US$36.3 billion) in 2018.

While debit cards remained the preferred payment channel during the review period, the economic crisis and high levels of unemployment opened doors for alternative channels such as charge and prepaid cards. Charge cards are popular among Slovak businesses and are used to meet temporary credit requirements. Moreover, firms can benefit from an interest-free credit period by paying outstanding amounts at the end of the due date. It is anticipated that charge cards will continue to be popular with businesses over the forecast period.

Scope

• This report provides a comprehensive analysis of Slovakia's cards and payments industry.

• It provides current values for the industry for 2013, and forecast figures for 2018.

• It details the different economic, infrastructural and business drivers affecting the 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 industry.

Key Highlights

• The Slovak card payments channel grew both in terms of volume and value during the review period (2009–2013). In terms of the number of cards in circulation, the channel increased from 5.1 million in 2009 to 5.7 million in 2013, at a compound annual growth rate (CAGR) of 2.83%. The card payments channel is anticipated to register a CAGR of 2.37% over the forecast period, to reach 6.5 million cards by the end of 2018.

• In terms of transaction value, the card payments channel posted a review-period CAGR of 6.32%, rising from EUR16.5 billion (US$22.9 billion) in 2009 to EUR21.0 billion (US$27.9 billion) in 2013. The channel is expected to post a forecast-period CAGR of 3.97%, increasing from EUR22.1 billion (US$29.8 billion) in 2014 to EUR25.8 billion (US$36.3 billion) in 2018.

• While debit cards remained the preferred payment channel during the review period, the economic crisis and high levels of unemployment opened doors for alternative channels such as charge and prepaid cards. Charge cards are popular among Slovak businesses and are used to meet temporary credit requirements. Moreover, firms can benefit from an interest-free credit period by paying outstanding amounts at the end of the due date. It is anticipated that charge cards will continue to be popular with businesses over the forecast period.

• Slovak consumers are generally quick to adopt new payment technologies, and with the introduction of mobile contactless payments by MasterCard in 2008, the value of mobile payments (m-payments) grew to reach EUR26.2 million (US$34.7 million) in 2013. With their popularity still growing, m-payments are anticipated to record a CAGR of 74.48%, to reach EUR402.0 million (US$566.3 million) in 2018.

• E-commerce in Slovakia is growing as a result of improvements in telecommunications infrastructure and payment and security systems, as well as increased consumer willingness and awareness towards online shopping. Rising internet penetration was a key driver behind online retail sales in the country, and the evolution of the modern retail sector also significantly impacted consumers' purchasing decisions. E-commerce registered a review-period CAGR of 28.35%, rising from EUR218.0 million (US$302.9 million) in 2009 to EUR591.7 million (US$784.4 million) in 2013.

Reasons to buy

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

• Understand the key market trends and growth opportunities within the industry.

• Assess the competitive dynamics in the industry.

• Gain insights into the marketing strategies used for selling various card types in Slovakia.

• Gain insights into key regulations governing Slovakia's cards and payments industry.

Companies mentioned

Tatra Banka

Slovenská sporiteľňa

Československá Obchodní Banka

Sberbank Slovakia

VUB Banka

MasterCard

Visa

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technologies

2.1.1 Rising internet penetration

2.1.2 Growing mobile payments

2.1.3 Automated teller machines (ATMs)

2.1.4 Point-of-sale (POS) terminals

2.1.5 Adoption of EMV infrastructure

2.2 Business Drivers

2.2.1 Growth in retail industry

2.2.2 Growth in e-commerce

2.3 Economic Drivers

2.3.1 GDP growth

2.3.2 GDP per capita

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Credit transfers

3.1.2 Direct debit

3.1.3 Card transactions

3.1.4 Check payments

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Overview

4.1.2 SEPA cards framework

4.1.3 Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)

4.1.4 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present fraud

4.2.2 Lost or stolen card

4.2.3 Counterfeit card fraud

4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends

5.1 Industry Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourist trips

5.2.2 Outbound tourist spending

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 Segment Size and Forecast

7.3.1 Analysis by number of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Segment 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 number 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 number 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 Segment 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 Segment Size and Forecast

9.4.1 Analysis by number 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 number of cards in circulation

10.1.2 Analysis by transaction value

11 Merchant Acquiring

12 Company Profiles of Card Issuers

12.1 Tatra Banka

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 Slovenská sporiteľňa

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Československá Obchodní Banka (ČSOB)

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Sberbank Slovakia

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 VUB Banka

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: Slovak Payment Channels (EUR Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks

Table 3: Slovak Card Fraud (EUR Thousand), 2009–2013

Table 4: Slovak Cards for High-Income Customers, 2014

Table 5: Slovak Virtual Cards by Bank, 2014

Table 6: Slovak Cards Offered to Spending-Cautious Customers by Bank, 2014

Table 7: Slovakia Cards Offered to Students and Young Population by Bank, 2014

Table 8: Slovak Cards Offered for SMEs and Entrepreneurs by Bank, 2014

Table 9: Slovak Card Payments Channel by Card Category (Thousand), 2009–2018

Table 10: Slovak Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Table 11: Slovak Card Payments Channel Size by Transaction Value (EUR Billion), 2009–2018

Table 12: Slovak Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 13: Slovak Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 14: Slovak Credit Cards Category Size by Transaction Value (EUR Million), 2009–2018

Table 15: Slovak Credit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 16: Slovak Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 17: Slovak Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 18: Slovak Personal Credit Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Table 19: Slovak Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018

Table 20: Slovak Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 21: Slovak Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 22: Slovak Commercial Credit Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Table 23: Slovak Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 24: Slovak Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 25: Slovak Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Table 26: Slovak Debit Cards Category Size by Transaction Value (EUR Billion), 2009–2018

Table 27: Slovak Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 28: Slovak Debit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 29: Slovak Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 30: Slovak Charge Cards Category Size by Transaction Value (EUR Million), 2009–2018

Table 31: Slovak Charge Cards Category Size by Transaction Value (US$ Million), 2009–2018

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

Table 33: Slovak Personal Charge Cards Segment Size by Volume of Cards, 2009–2018

Table 34: Slovak Personal Charge Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Table 35: Slovak Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 36: Slovak Personal Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 37: Slovak Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 38: Slovak Commercial Charge Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Table 39: Slovak Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

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

Table 41: Slovak Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 42: Slovak Prepaid Cards Category Size by Transaction Value (EUR Million), 2009–2018

Table 43: Slovak Prepaid Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 44: Tatra Banka – Key Financial Indicators (EUR Million), Year Ending December, 2011–2012

Table 45: Tatra Banka – Card Portfolio and Key Features

Table 46: Slovenská sporiteľňa Key Financial Indicators (EUR Million), Year Ending December, 2012–2013

Table 47: Slovenská sporiteľňa – Card Portfolio and Key Features

Table 48: ČSOB Key Financial Indicators (EUR Million), Year Ending December, 2012–2013

Table 49: ČSOB – Card Portfolio and Key Features

Table 50: Sberbank Slovakia Key Financial Indicators (EUR Million), Year Ending December, 2012–2013

Table 51: Sberbank Slovakia – Card Portfolio and Key Features

Table 52: VÚB Banka – Key Financial Indicators (EUR Million), Year Ending December, 2012–2013

Table 53: VÚB Banka – Card Portfolio and Key Features

Table 54: Key Definitions

List of Figures

Figure 1: Benchmarking the Slovak Card Payments Channel Against Other European Markets

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

Figure 3: Slovak Internet Penetration (Internet Users per 100 Inhabitants), 2009–2018

Figure 4: Slovak Value of M-Payments (EUR Million), 2010–2018

Figure 5: Slovak ATM Penetration, 2009–2018

Figure 6: Slovak POS Penetration, 2009–2018

Figure 7: EMV Card Volume in Slovakia (Thousand), 2009–2013

Figure 8: Slovak Value of Retail Sales (EUR Billion), 2009–2018

Figure 9: Slovak E-commerce Value (EUR Million), 2009–2013

Figure 10: Slovak Real GDP Growth (%), 2009–2018

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

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

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

Figure 14: Slovak Card Fraud (%), 2009 and 2013

Figure 15: Slovak Card-Not-Present Fraud Value (EUR Thousand), 2009–2013

Figure 16: Slovak Lost or Stolen Card Fraud Value (EUR Thousand), 2009–2013

Figure 17: Slovak Counterfeit Card Fraud Value (EUR Thousand), 2009–2013

Figure 18: Slovak Card ID Theft Value (EUR Thousand), 2009–2013

Figure 19: Slovak Cards and Payments Industry Segmentation by Card Type, 2014

Figure 20: Slovak Volume of Outbound Business Trips (Thousand), 2009–2018

Figure 21: Slovak Volume of Outbound Tourist Trips (Thousand), 2009–2018

Figure 22: Slovak Outbound Tourist Spending (EUR Million), 2009–2018

Figure 23: Slovak Card Payments Channel by Card Category (%), 2009–2018

Figure 24: Slovak Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 25: Slovak Card Payments Channel Size by Transaction Value (EUR Billion), 2009–2018

Figure 26: Slovak Credit Cards Category Volume and Penetration, 2009–2018

Figure 27: Slovak Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 28: Slovak Credit Cards Category Size by Transaction Value (EUR Million), 2009–2018

Figure 29: Slovak Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 30: Slovak Credit Cards Transaction Value Share Analysis by Channel (EUR Million), 2009–2018

Figure 31: Slovak Credit Cards Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 32: Slovak Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 33: Slovak Personal Credit Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Figure 34: Slovak Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 35: Slovak Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 36: Slovak Commercial Credit Cards Segment Size by Transaction Value (EUR Million), 2009–2018

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

Figure 38: Slovak Credit Cards Category Share by Scheme (%), 2013

Figure 39: Slovak Credit Cards Category Share by Issuer (%), 2013

Figure 40: Slovak Debit Cards Category Volume and Penetration, 2009–2018

Figure 41: Slovak Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 42: Slovak Debit Cards Category Size by Transaction Value (EUR Billion), 2009–2018

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

Figure 44: Slovak Debit Cards Transaction Value Share Analysis by Channel (EUR Billion), 2009–2018

Figure 45: Slovak Debit Cards Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 46: Slovak Debit Cards Category Share by Scheme (%), 2013

Figure 47: Slovak Debit Cards Category Share by Issuer (%), 2013

Figure 48: Slovak Charge Cards Category Volume and Penetration, 2009–2018

Figure 49: Slovak Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 50: Slovak Charge Cards Category Size by Transaction Value (EUR Million), 2009–2018

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

Figure 52: Slovak Charge Cards Transaction Value Share Analysis by Channel (EUR Million), 2009–2018

Figure 53: Slovak Charge Cards Transaction Volume Share Analysis by Channel (Thousand), 2009–2018

Figure 54: Slovak Personal Charge Cards Segment Size by Volume of Cards, 2009–2018

Figure 55: Slovak Personal Charge Cards Segment Size by Transaction Value (EUR Thousand), 2009–2018

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

Figure 57: Slovak Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 58: Slovak Commercial Charge Cards Segment Size by Transaction Value (EUR Million), 2009–2018

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

Figure 60: Slovak Charge Cards Category Share by Scheme (%), 2013

Figure 61: Slovak Prepaid Cards Category Volume and Penetration, 2011–2018

Figure 62: Slovak Prepaid Cards Category Size by Volume of Cards (Thousand), 2011–2018

Figure 63: Slovak Prepaid Cards Category Size by Transaction Value (EUR Million), 2011–2018

Figure 64: Slovak Merchant Acquirer POS Terminals Market Share (%), 2013

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