The Cards and Payments Industry in Croatia: Emerging trends and opportunities to 2020

  • ID: 4327747
  • Report
  • Region: Croatia
  • 53 pages
  • GlobalData
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FEATURED COMPANIES

  • American Express
  • Diners Club
  • Hrvatska poštanska banka
  • Mastercard
  • OTP Banka
  • Privredna banka Zagreb
  • MORE
The Cards and Payments Industry in Croatia: Emerging trends and opportunities to 2020

Summary

Croatian economy finally registered a positive growth rate of 1.98% in 2015, after experiencing a recession since 2009 owing to the Eurozone crisis. Croatia became the 28th member of the EU on July 1, 2013, and has since raised its competitiveness after benefiting from EU funding to support economic development. Consequently, the government has undertaken labor, pension, social benefit, and investment reforms, which have stimulated employment opportunities. Growth in the cards and payments industry remained weak during the review period (2010-15); however, given the strengthening economy it is anticipated to show growth over the forecast period (2016-20).

In terms of transaction value, debit cards remained the most popular payment card during the review period, accounting for 79.1% of the total payment cards transaction value in 2016. Due to the European debt crisis and uncertain economic conditions, the majority of Croatian consumers became debt-averse and preferred to use debit cards to make payments in order to track their expenses. Consequently, the debit cards market registered growth in terms of the number of cards in circulation, transaction value, and volume during the review period. Frequency of transactions at the POS remained higher at 24.1 compared to at ATMs (15.1), indicating card holders’ preference for using debit cards for small-value purchases.

The payment cards market is embracing new technologies such as contactless. Contactless cards were first introduced in Croatia in December 2012, with Mastercard PayPass first issued by ESB. To widen the growth of contactless payments, banks are increasingly offering rewards to encourage customers to adopt contactless payments. The number of contactless payment cards increased significantly from 878,326 in 2012 to 2.7 Million in 2016. As of December 2015, around 27% of POS terminals were contactless-enabled, an increase of 17.9% on the previous year.

Banks are also making concerted efforts to educate customers with regards to credit card benefits and how to use them judiciously, without falling into debt. In April 2013, Erste & Steiermärkische Bank (ESB) launched the budget control app ‘Diners ProFile,’ enabling customers to learn about their spending habits on food, mobiles, fuel, clothing, and utilities. To promote the use of credit cards, banks also offer card holders a number of benefits and value-added services such as installment facilities, reward points, cashback, and discounts at partner retailers. Privredna Banka Zagreb (PBZ) revamped its membership reward program in 2012, enabling its credit card holders to instantly and directly redeem their points at establishments that accept its Membership Rewards Card.

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

In depth, this report provides the following:
  • Current and forecast values for each market in the Croatian cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, direct debit, payment cards and cheques. 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 Croatian 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: Privredna banka Zagreb, Zagrebacka Banka, Erste & Steiermärkische Bank, Hrvatska poštanska banka, OTP Banka, Raiffeisen Bank, Splitska Banka, Visa, Mastercard, American Express, Diners Club.

Scope
  • Contactless technology has been gaining traction in Croatia and is being deployed both within POS terminals as well as ATMs. In March 2017 ESB launched an ATM that enables customers to withdraw cash by placing their contactless card on the unit’s contactless card reader. The facility was launched in collaboration with Erste Group Card Processor and Mastercard and was developed by Printec Croatia and Asseco SEE. As of March 2017 the bank has deployed 132 contactless ATMs, and plans to activate the rest of its ATMs with contactless technology by December 2017.
  • Alternative payments are slowly emerging in Croatia, with banks and payment service providers launching new solutions. The most recent is the launch of a contactless mobile wallet service called Wave2Pay in April 2015 by PBZ, Intesa Sanpaolo, and American Express. The solution allows users to store multiple card details, and they can choose any card to make contactless payments. Similarly, Paysafecard launched its online prepaid payment solution in May 2014.
  • To reduce overall operating costs, banks in Croatia are shifting their focus to low-cost channels such as online banking. For instance, Splitska Banka launched its digital banking platform SB SmartNet in March 2016, allowing users to conduct standard banking transactions through desktop PCs and mobile phones. In addition to regular banking services, the platform provides users with a visual analysis of their income and expenditure through graphs and charts. The platform also provides a check on their household expenses, alerts on unplanned expenses, and reminders about the payment due dates of credit card invoices.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Croatian cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Croatian cards and payments industry.
  • Assess the competitive dynamics in the Croatian cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Croatia.
  • Gain insights into key regulations governing the Croatian cards and payments industry.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • American Express
  • Diners Club
  • Hrvatska poštanska banka
  • Mastercard
  • OTP Banka
  • Privredna banka Zagreb
  • 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. PayPal
3.2.2. Wave2Pay
3.2.3. Paysafecard
4. Regulations in the Cards and Payments Industry
4.1. Regulatory framework
4.1.1. SEPA implementation
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 card comparison
9. Prepaid Cards
10. Appendix
10.1. Abbreviations and acronyms
10.2. Supplementary data
10.3. Definitions
10.4. Methodology

List of Tables
Table 1: Croatia: key facts, 2016
Table 2: Croatia: regional benchmarking of payment cards, 2016
Table 3: Croatia: mode of entry of foreign banks
Table 4: Croatia: debit card comparison and key features, 2016
Table 5: Croatia: gold credit cards comparison and key features, 2016
Table 6: Croatia: premium credit cards comparison and key features, 2016
Table 7: Croatia: charge cards comparison and key features, 2016
Table 8: Croatia: payment instrument transaction values (HRKbn), 2012-16e
Table 9: Croatia: payment instrument transaction values ($bn), 2012-16e
Table 10: Croatia: payment instrument transaction volumes (millions), 2012-16e
Table 11: Croatia: payment cards in circulation by type (millions), 2012-20f
Table 12: Croatia: volume of payment card transactions (millions), 2012-20f
Table 13: Croatia: value of payment card transactions (HRKbn), 2012-20f
Table 14: Croatia: value of payment card transactions ($bn), 2012-20f
Table 15: Croatia: debit cards in circulation (millions), 2012-20f
Table 16: Croatia: debit card transaction volumes, 2012-20f
Table 17: Croatia: debit card transaction values (HRK), 2012-20f
Table 18: Croatia: debit card transaction values ($), 2012-20f
Table 19: Croatia: debit cards in circulation by scheme (millions), 2012-16e
Table 20: Croatia: debit card transaction values by scheme (HRKbn), 2012-16e
Table 21: Croatia: debit card transaction values by scheme ($bn), 2012-16e
Table 22: Croatia: debit card transaction values by issuer (HRKbn), 2012-16e
Table 23: Croatia: debit card transaction values by issuer ($bn), 2012-16e
Table 24: Croatia: pay-later cards in circulation (millions), 2012-20f
Table 25: Croatia: pay-later card transaction volumes, 2012-20f
Table 26: Croatia: pay-later card transaction values (HRK), 2012-20f
Table 27: Croatia: pay-later card transaction values ($), 2012-20f
Table 28: Croatia: pay-later cards in circulation by scheme (000s), 2012-16e
Table 29: Croatia: pay-later card transaction values by scheme (HRKbn), 2012-16e
Table 30: Croatia: pay-later card transaction values by scheme ($m), 2012-16e
Table 31: Croatia: pay-later card transaction values by issuer (HRKbn), 2012-16e
Table 32: Croatia: pay-later card transaction values by issuer ($m), 2012-16e
Table 33: Croatia: credit cards in circulation (000s), 2012-20f
Table 34: Croatia: credit card transaction volumes, 2012-20f
Table 35: Croatia: credit card transaction values (HRK), 2012-20f
Table 36: Croatia, Credit Card Transaction Values ($), 2012-20f
Table 37: Croatia: credit cards in circulation by scheme (000s), 2012-16e
Table 38: Croatia: credit card transaction values by scheme (HRKbn), 2012-16e
Table 39: Croatia: credit card transaction values by scheme ($m), 2012-16e
Table 40: Croatia: charge cards in circulation (000s), 2012-20f
Table 41: Croatia: charge card transaction volumes, 2012-20f
Table 42: Croatia: charge card transaction values (HRK), 2012-20f
Table 43: Croatia: charge card transaction values ($), 2012-20f
Table 44: Croatia: charge cards in circulation by scheme (000s), 2012-16e
Table 45: Croatia: charge card transaction values by scheme (HRKbn), 2012-16e
Table 46: Croatia: charge card transaction values by scheme ($m), 2012-16e
Table 47: Croatia: prepaid cards in circulation (000s), 2012-20f
Table 48: Croatia: prepaid card transaction values (HRKm), 2012-20f
Table 49: Croatia: prepaid card transaction values ($m), 2012-20f
Table 50: Key definitions
Table 51: Annual average exchange rate (Croatian kuna-US dollar), 2012-20f

List of Figures
Figure 1: Croatia: payment instrument shares by transaction value (%), 2012 vs 2016
Figure 2: Croatia: payment instrument share by transaction volume (%), 2012 vs 2016
Figure 3: Croatia: e-commerce value
Figure 4: Croatia: population and economic indicators
Figure 5: Croatia: ATMs, POS terminals, and real household consumption
Figure 6: Croatia: payment cards transaction value and cards in circulation, 2012-20f
Figure 7: Croatia: debit card penetration and turnover per card
Figure 8: Croatia: debit card scheme and issuer transaction value shares, 2016
Figure 9: Croatia: pay-later card penetration and turnover per card
Figure 10: Croatia: pay-later card scheme and issuer transaction value shares, 2016
Figure 11: Croatia: prepaid cards in circulation and transaction value, 2012-20f
Note: Product cover images may vary from those shown
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  • Privredna banka Zagreb
  • Zagrebacka Banka
  • Erste & Steiermärkische Bank
  • Hrvatska poštanska banka
  • OTP Banka
  • Raiffeisen Bank
  • Splitska Banka
  • 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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