The Cards and Payments Industry in Greece: Emerging Trends and Opportunities to 2020

  • ID: 3766335
  • Report
  • Region: Greece
  • 50 pages
  • GlobalData
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FEATURED COMPANIES

  • Alpha Bank
  • American Express
  • Diners Club
  • Eurobank Ergasias
  • Mastercard
  • National Bank of Greece
  • MORE
The Cards and Payments Industry in Greece: Emerging trends and opportunities to 2020

Summary

Greece was severely affected by the Eurozone crisis, due to government overspending, tax evasion, and a budget deficit that eventually spiraled out of control. Many banks faced liquidity problems and loan defaults, which had a direct impact on the cards and payments industry. With restrictions placed by the Greek government on cash withdrawals, consumers fear that banks might freeze available funds. This has driven debit card transaction volumes at point of sale (POS) terminals, which registered a review-period (2012-16) compound annual growth rate (CAGR) of 58.9%.

Government announced a number of initiatives to revive the economy, including cuts in public sector employment, defense, and other government spending. In 2010, the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC) announced a three-year aid package worth $115.7bn (EUR110bn) to bail out the Greek economy. A second bailout of $136.8bn (EUR130bn) followed in February 2012.

In August 2015, the EU approved a $90.5bn (EUR86bn) bailout, provided the Greek government impose austerity measures including a tax increase, public spending cuts, and efforts to tackle tax evasion by encouraging electronic payments. With the anticipated economic revival and the injection of liquidity into the banking sector, the Greek payment card market is anticipated to gradually shift towards sustainable growth over the forecast period (2016-20).

Despite the financial crisis, Greece’s e-commerce space is one of the fastest-growing in Europe. It grew from $2.9bn (EUR2.8bn) in 2012 to $4.9bn (EUR4.7bn) in 2016, at a review-period CAGR of 13.6%. The preferred mode of payment for e-commerce transactions was payment cards, which accounted for 35% of the total transaction value. Digital and mobile wallets, as well as carrier billing, are gaining prominence in the country, collectively accounting for 28.4% of total e-commerce transaction value in 2016.

Ministry of Finance is also encouraging the use of debit and credit cards for payments by providing tax allowances on payment card usage. Tax payers can get additional allowances on using payment cards for 80% of expenditure annually. The ministry has also proposed incentives for businesses by reducing the tax rate on earnings from sales via payment cards. This will boost the usage of debit and credit cards and help resolve the problem of tax evasion.

The report "The Cards and Payments Industry in Greece: Emerging trends and opportunities to 2020" provides top-level market analysis, information and insights into the Greek cards and payments industry.

In particular, this report provides the following:
  • Current and forecast values for each market in the Greek cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, cash, direct debit, payment cards and cheques. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • Analysis of various market drivers and regulations governing the Greek cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
Companies mentioned in this report: Piraeus Bank, National Bank of Greece, Alpha Bank, Eurobank Ergasias, Visa, MasterCard, American Express, Diners Club

Scope
  • In the wake of the economic crisis, the Greek government was forced to implement austerity measures to gain access to a $95.5bn (€86bn) bailout package from the IMF, the EU, and the ECB. Consequently, the government imposed capital controls and took a number of measures to arrest the outward flow of money, curb tax evasion, and encourage electronic payments, including restrictions on cash withdrawals at ATMs, remittances, and the use of payment cards abroad. The latest measure is the compulsory acceptance of card-based payments at retail outlets and by certain categories of professional (such as doctors, lawyers, electricians, and plumbers) effective from January 1, 2016. However, the restrictions imposed on cash withdrawals and fund transfers were relaxed in August 2016 to increase liquidity in the banking system.
  • To boost electronic payments, in November 2016 the Greek government proposed to provide tax benefits and other incentives to individuals and businesses for using payment cards. These include additional tax benefits to those who use cards for more than 80% of their total annual spending, and tax discounts on medical expenses paid with payment cards. The ministry has also proposed incentives for businesses by reducing the tax rate on earnings from sales via payment cards. The government also proposes to make it compulsory for businesses to pay their employees through a bank account if their annual salary is above $526.10 (€500).
  • While the government has placed restrictions on transactions from international online retailers, domestic e-commerce activities are outside the boundaries of the rules. To benefit from this, payment companies are introducing new online payment solutions for domestic online purchases. The latest of these was the June 2016 introduction of Masterpass by Mastercard. Masterpass stores all of a customer’s payment cards in a single location. This service is supported by Alpha Bank, Piraeus Bank, Eurobank Ergasias, AXA Insurance, Leroy Merlin, Sephora, and Wind.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Greek cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Greek cards and payments industry.
  • Assess the competitive dynamics in the Greek cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Greece.
  • Gain insights into key regulations governing the Greek cards and payments industry.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Alpha Bank
  • American Express
  • Diners Club
  • Eurobank Ergasias
  • Mastercard
  • National Bank of Greece
  • MORE
1. EXECUTIVE SUMMARY
1.1. Market overview
1.2. Key facts
1.3. Top five industry events
2. PAYMENT INSTRUMENTS
2.1. Current payment environment
3. E-COMMERCE AND ALTERNATIVE PAYMENTS
3.1. E-commerce market analysis
3.2. Alternative payment solutions
3.2.1. Masterpass
3.2.2. paysafecard
3.2.3. winbank wallet
3.2.4. my Alpha Wallet
3.2.5. Viva Wallet
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY
4.1. Regulatory framework
4.1.1. SEPA cards framework
4.1.2. Interchange fee regulation
4.2. Anti-money laundering
4.3. Foreign direct investment regulations
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS
6. PAYMENT CARDS
7. DEBIT CARDS
7.1. Debit card market analysis
7.2. Competition in the debit card market
7.3. Debit card comparison
8. PAY-LATER CARDS
8.1. Pay-later card market analysis
8.2. Competition in the pay-later card market
8.3. Pay-later cards comparison
9. PREPAID CARDS
10. APPENDIX
10.1. Abbreviations and acronyms
10.2. Supplementary data
10.3. Definitions
10.4. Methodology
10.5. Bibliography

List of Tables
Table 1: Greece: key facts, 2016
Table 2: Greece: regional benchmarking of payment cards, 2016
Table 3: Greece: mode of entry of foreign banks
Table 4: Greece: debit card comparison and key features, 2016
Table 5: Greece: gold credit card comparison and key features, 2016
Table 6: Greece: premium credit card comparison and key features, 2016
Table 7: Greece: charge card comparison and key features, 2016
Table 8: Greece: payment instrument transaction values (€bn), 2012-16e
Table 9: Greece: payment instrument transaction values ($bn), 2012-16e
Table 10: Greece: payment instrument transaction volumes (millions), 2012-16e
Table 11: Greece: payment cards in circulation by type (millions), 2012-20f
Table 12: Greece: volume of payment card transactions (millions), 2012-20f
Table 13: Greece: value of payment card transactions (€bn), 2012-20f
Table 14: Greece: value of payment card transactions ($bn), 2012-20f
Table 15: Greece: debit cards in circulation (millions), 2012-20f
Table 16: Greece: debit card transaction volumes (millions), 2012-20f
Table 17: Greece: debit card transaction values (€), 2012-20f
Table 18: Greece: debit card transaction values ($), 2012-20f
Table 19: Greece: debit cards in circulation by scheme (millions), 2012-16e
Table 20: Greece: debit card transaction values by scheme (€bn), 2012-16e
Table 21: Greece: debit card transaction values by scheme ($bn), 2012-16e
Table 22: Greece: debit card transaction values by issuer (€bn), 2012-16e
Table 23: Greece: debit card transaction values by issuer ($bn), 2012-16e
Table 24: Greece: pay-later cards in circulation (millions), 2012-20f
Table 25: Greece: pay-later card transaction volumes (millions), 2012-20f
Table 26: Greece: pay-later card transaction values (€), 2012-20f
Table 27: Greece: pay-later card transaction values ($), 2012-20f
Table 28: Greece: pay-later cards in circulation by scheme (000s), 2012-16e
Table 29: Greece: pay-later card transaction values by scheme (€m), 2012-16e
Table 30: Greece: pay-later card transaction values by scheme ($m), 2012-16e
Table 31: Greece: pay-later card transaction values by issuer (€m), 2012-16e
Table 32: Greece: pay-later card transaction values by issuer ($m), 2012-16e
Table 33: Greece: credit cards in circulation (millions), 2012-20f
Table 34: Greece: credit card transaction volumes (millions), 2012-20f
Table 35: Greece: credit card transaction values (€), 2012-20f
Table 36: Greece: credit card transaction values ($), 2012-20f
Table 37: Greece: credit cards in circulation by scheme (000s), 2012-16e
Table 38: Greece: credit card transaction values by scheme (€m), 2012-16e
Table 39: Greece: credit card transaction values by scheme ($m), 2012-16e
Table 40: Greece: charge cards in circulation (millions), 2012-20f
Table 41: Greece: charge card transaction volumes (000s), 2012-20f
Table 42: Greece: charge card transaction values (€), 2012-20f
Table 43: Greece: charge card transaction values ($), 2012-20f
Table 44: Greece: charge cards in circulation by scheme (000s), 2012-16e
Table 45: Greece: charge card transaction values by scheme (€m), 2012-16e
Table 46: Greece: charge card transaction values by scheme ($m), 2012-16e
Table 47: Greece: prepaid cards in circulation (000s), 2012-20f
Table 48: Greece: prepaid card transaction values (€m), 2012-20f
Table 49: Greece: prepaid card transaction values ($m), 2012-20f
Table 50: Key definitions

List of Figures
Figure 1: Greece: payment instrument shares by transaction value (%), 2012 vs 2016
Figure 2: Greece: payment instrument shares by transaction volume (%), 2012 vs 2016
Figure 3: Greece: e-commerce value
Figure 4: Greece: population and economic indicators
Figure 5: Greece: ATMs, POS terminals, and household consumption
Figure 6: Greece: payment card transaction value and cards in circulation, 2012-20f
Figure 7: Greece: debit card penetration and turnover per card
Figure 8: Greece: debit card scheme and issuer transaction value shares, 2016
Figure 9: Greece: pay-later card penetration and turnover per card
Figure 10: Greece: pay-later card scheme and issuer transaction value share (%), 2016
Figure 11: Greece: prepaid cards in circulation and total transaction value, 2012-20f
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  • Piraeus Bank
  • National Bank of Greece
  • Alpha Bank
  • Eurobank Ergasias
  • Visa
  • Mastercard
  • American Express
  • Diners Club
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown
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