The Cards and Payments Industry in the Czech Republic: Emerging Trends and Opportunities to 2020

Published: May, 2016 | Pages: 58 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
Timetric’s 'The Cards and Payments Industry in the Czech Republic: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Czech Republic's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011–2015).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2016–2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together Timetric’s 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.

Summary
Timetric’s 'The Cards and Payments Industry in the Czech Republic: Emerging Trends and Opportunities to 2020' report provides top-level market analysis, information and insights into the Czech Republic's cards and payments industry, including:

• Current and forecast values for each market in the Czech cards and payments industry, including debit card, credit and charge cards.

• Detailed insights into payment instruments including credit transfers, direct debits, cash transactions, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.

• E-commerce market analysis.

• Analysis of various market drivers and regulations governing the Czech cards and payments industry.

• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

• Comprehensive analysis of consumer attitudes and buying preferences for cards.

• The competitive landscape in the Czech Republic's cards and payments industry.

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 2015, and forecast figures to 2020.

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

• It outlines the current regulatory framework in the industry.

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

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 in the Czech Republic's cards and payments industry.

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

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

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

Key Highlights
• According to the Czech National Bank (CNB), the number of cards with contactless functionality was 8.7 million, accounting for 75% of the total 11.6 million cards in 2015. Similarly, the number of contactless transactions reached 369.2 million in 2015 – which accounted for 48.5% of the country’s total payment card transactions. All major banks offer contactless cards, and banks and payment companies have enhanced efforts to increase acceptance of contactless cards. Komerční Banka launched a contactless debit card in collaboration with Visa in February 2014; it enables consumers to pay without inserting the card or entering the personal identification number (PIN) at point of sale (POS) terminals for payments of up to US$20.4 (CZK500). In November 2015, the bank announced plans to install 6,000 contactless-capable POS terminals across the Czech Republic.

• In view of the rising e-commerce market, there is a rise in the uptake of alternative payments in the country with the availability of Paysafecard, Ukash, PayPal and MasterPass. MasterCard launched the MasterPass digital wallet in the Czech Republic in November 2014. MasterPass allows consumers to store payment card, shipping and billing address details in one place. Initially, payments were accepted at lza.cz, Czech Railways and DameJidlo.cz. In December 2015, MasterCard extended the payment platform to FreshDirect customersthe online fresh food supplier, to provide the option of paying through MasterPass for their online purchase. FreshDirect offered a US$25 (CZK612.2) discount for consumers on their first purchase using MasterPass as a payment option during the December 2015–March 2016 period.

• Banks are increasingly focusing on small and mid-sized enterprises (SMEs) by offering business cards with a range of value-added services and pricing benefits. The latest being the introduction of MasterCard Business World Credit Cardin December 2015 by Komerční Banka. Cardholders are offered 1% cashback on all payments made until December 2016. The card is issued without charge, and the maintenance fee is waived if monthly spending surpasses US$204.2 (CZK5,000). The card also offers credit of US$4,083.8 (CZK100,000) to new start ups in selected sectors. UniCredit Bank offers Visa Electron debit cards without maintenance fees to SMEs with turnovers of up to US$2 million (CZK50 million) annually. The cardholders are provided benefits such travel insurance, purchase protection insurance and membership in the Priority Pass program entitling admission to 600 airport lounges across the world.

 Table of Contents

1 Definitions and Methodology
1.1 Definitions
1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments
4.1 Current Payment Environment

5 E-Commerce
5.1 E-Commerce Market Analysis

6 Alternative Payments
6.1 Alternative Payment Instruments
6.1.1 Paysafecard
6.1.2 Ukash
6.1.3 MasterPass
6.1.4 PayPal
6.1.5 O2 direct carrier billing

7 Regulations in the Cards and Payments Industry
7.1 Regulatory Framework
7.1.1 SEPA cards framework
7.1.2 Anti-money laundering framework
7.1.3 Interchange fee regulation
7.2 Foreign Direct Investment (FDI) Regulations

8 Analysis of Cards and Payments Industry Drivers
8.1 Demographic Drivers
8.2 Economic Drivers
8.3 Infrastructure Drivers
8.4 Business Drivers

9 Market Segmentation
9.1 Market Segmentation and Targeting
9.1.1 Consumer cards
9.1.2 Commercial cards

10 Payment Cards
10.1 Payment Cards Market Analysis
10.1.1 Volume and value of payment card transactions by type
10.1.2 Personal vs commercial cards
10.1.3 Contactless Cards

11 Debit Cards
11.1 Debit Card Market Analysis
11.1.1 Debit card transaction volumes and values by channel
11.1.2 Debit card scheme and issuer shares in terms of transaction value
11.1.3 Debit cards comparison

12 Credit Cards
12.1 Credit Card Market Analysis
12.1.1 Credit card transaction volumes and values by channel
12.1.2 Credit card scheme and issuer shares in terms of transaction value
12.1.3 Credit cards comparison

13 Charge Cards
13.1 Charge Card Market Analysis
13.1.1 Charge card transaction volumes and values by channel
13.1.2 Charge card scheme shares in terms of transaction value

14 Commercial Cards
14.1 Commercial Card Market Analysis
14.1.1 Commercial cards comparison

15 Appendix
15.1 Tables
15.2 Contact Timetric
15.3 About Timetric
15.4 Timetric’s Services
15.5 Disclaimer

List of Tables
Table 1: Key Definitions
Table 2: Annual Average Exchange Rate
Table 3: The Czech Republic – Key Facts, 2015
Table 4: Regional Benchmarking of the Czech Republic’s Payment Cards, 2015
Table 5: Czech Republic – Mode of Entry of Foreign Banks
Table 6: Cards for High-Income Consumers, 2016
Table 7: Cards for Students and Young Population, 2016
Table 8: Cards for Shoppers, 2016
Table 9: Cards for Travelers, 2016
Table 10: Commercial Cards Comparison and Key Features, 2016
Table 11: Czech Republic – Visa Domestic Multi-Lateral Interchange Fees, December 2015
Table 12: Czech Republic – MasterCard Consumer Card Interchange Fees, April 2016
Table 13: Czech Republic – MasterCard Commercial Card Interchange Fees, April 2016
Table 14: Czech Republic – Debit Cards Comparison and Key Features, 2016
Table 15: Czech Republic – Visa Domestic Multi-lateral Interchange Fees, December 2015
Table 16: Czech Republic – MasterCard Consumer Card Interchange Fees, April 2016
Table 17: Czech Republic – MasterCard Commercial Card Interchange Fees, April 2016
Table 18: Czech Republic – Gold Credit Cards Comparison and Key Features, 2016
Table 19: Czech Republic – Premium Credit Cards Comparison and Key Features, 2016
Table 20: Czech Republic – Commercial Cards Comparison and Key Features, 2016
Table 21: Czech Republic – Payment Instrument Transaction Values (CZK Billion), 2011–2015
Table 22: Czech Republic – Payment Instrument Transaction Values (US$ Billion), 2011–2015
Table 23: Czech Republic – Payment Instrument Transaction Volumes (Million), 2011–2015
Table 24: Czech Republic – Number of Payment Cards in Circulation by Type (Million), 2011–2020
Table 25: Czech Republic – Volume of Payment Card Transactions by Type (Million), 2011–2020
Table 26: Czech Republic – Value of Payment Card Transactions by Type (CZK Billion), 2011–2020
Table 27: Czech Republic – Value of Payment Card Transactions by Type (US$ Billion), 2011–2020
Table 28: Czech Republic – Personal and Commercial Card Transaction Volumes (Million), 2011–2020
Table 29: Czech Republic – Personal and Commercial Card Transaction Values (CZK Billion), 2011–2020
Table 30: Czech Republic – Personal and Commercial Card Transaction Values (US$ Billion), 2011–2020
Table 31: Czech Republic – Number of Debit Cards in Circulation (Million), 2011–2020
Table 32: Czech Republic – Debit Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 33: Czech Republic – Debit Card Total and Average Transaction Values by Channel, 2011–2020
Table 34: Czech Republic – Debit Card Total and Average Transaction Values by Channel, 2011–2020
Table 35: Czech Republic – Number of Debit Cards in Circulation by Scheme (Million), 2011–2015
Table 36: Czech Republic – Debit Card Transaction Values by Scheme (CZK Billion), 2011–2015
Table 37: Czech Republic – Debit Card Transaction Values by Scheme (US$ Billion), 2011–2015
Table 38: Czech Republic – Debit Card Transaction Values by Issuer (CZK Billion), 2011–2015
Table 39: Czech Republic – Debit Card Transaction Values by Issuer (US$ Billion), 2011–2015
Table 40: Czech Republic – Number of Credit Cards in Circulation (Million), 2011–2020
Table 41: Czech Republic – Credit Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 42: Czech Republic – Credit Card Total and Average Transaction Values by Channel, 2011–2020
Table 43: Czech Republic – Credit Card Total and Average Transaction Values by Channel, 2011–2020
Table 44: Czech Republic – Number of Credit Cards in Circulation by Scheme (Thousand), 2011–2015
Table 45: Czech Republic – Credit Card Transaction Values by Scheme (CZK Million), 2011–2015
Table 46: Czech Republic – Credit Card Transaction Values by Scheme (US$ Million), 2011–2015
Table 47: Czech Republic – Pay Later Card Transaction Values by Issuer (CZK Billion), 2011–2015
Table 48: Czech Republic – Pay Later Card Transaction Values by Issuer (US$ Billion), 2011–2015
Table 49: Czech Republic – Number of Charge Cards in Circulation (Thousand), 2011–2020
Table 50: Czech Republic – Charge Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 51: Czech Republic – Charge Card Total and Average Transaction Values by Channel, 2011–2020
Table 52: Czech Republic – Charge Card Total and Average Transaction Values by Channel, 2011–2020
Table 53: Czech Republic – Number of Charge Cards in Circulation by Scheme (Thousand), 2011–2015
Table 54: Czech Republic – Charge Card Transaction Values by Scheme (CZK Billion), 2011–2015
Table 55: Czech Republic – Charge Card Transaction Values by Scheme (US$ Million), 2011–2015
Table 56: Czech Republic – Number of Commercial Cards in Circulation (Thousand), 2011–2020
Table 57: Czech Republic – Commercial Card Transaction Values (CZK Billion), 2011–2020
Table 58: Czech Republic – Commercial Card Transaction Values (US$ Million), 2011–2020

List of Figures
Figure 1: Czech Republic – Payment Instrument Shares by Transaction Value (%), 2011 vs 2015
Figure 2: Czech Republic – Payment Instrument Shares by Transaction Volume (%), 2011 vs 2015
Figure 3: Czech Republic – E-Commerce Value (US$ Billion), 2011–2020
Figure 4: Czech Republic – Total Population and Structure
Figure 5: Czech Republic – Economic Indicators
Figure 6: Czech Republic – Number of ATMs and POS Terminals
Figure 7: Czech Republic – Real Household Consumption and Outbound Tourist Expenditure
Figure 8: Czech Republic – Segmentation by Card Type
Figure 9: Czech Republic – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2011–2020
Figure 10: Czech Republic – Volume and Value of Payment Card Transactions by Type (%), 2011–2020
Figure 11: Czech Republic – Personal and Commercial Card, Transaction Volumes and Values (%), 2011–2020
Figure 12: Czech Republic – Contactless Cards, Transaction Volumes and Values, 2014 vs 2015
Figure 13: Czech Republic – Growth in Debit Card Transaction Values and Number of Debit Cards in Circulation, 2011–2020
Figure 14: Czech Republic – Debit Card Transaction Volumes and Values by Channel, 2011–2020
Figure 15: Czech Republic – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015
Figure 16: Czech Republic – Growth in Credit Card Transaction Values and Number of Credit Cards in Circulation, 2011–2020
Figure 17: Czech Republic – Credit Card Transaction Volumes and Values by Channel, 2011–2020
Figure 18: Czech Republic – Credit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015
Figure 19: Czech Republic – Growth in Charge Card Transaction Values and Number of Charge Cards in Circulation, 2011–2020
Figure 20: Czech Republic – Charge Card Transaction Volumes and Values by Channel, 2011–2020
Figure 21: Czech Republic – Charge Card Scheme Shares in Terms of Transaction Value (%), 2015