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

2017-06-28
Price :
Published : Jun-2017
No. of Pages : 53

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, Zagreba?ka 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.
Filed in: Banking & Finance
Publisher : GlobalData
More Reports
Title Price Buy Now

Governance, Risk and Compliance – The Kazakhstani Insurance Industry

Governance, Risk and Compliance - The Kazakhstani Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Kazakhstani Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Kazakhstan. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation a......
$1495

Governance, Risk and Compliance – The Luxembourg Insurance Industry

Governance, Risk and Compliance - The Luxembourg Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Luxembourg Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Luxembourg. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and......
$1495

Strategic Market Intelligence: Life Insurance in Pakistan – Key Trends and Opportunities to 2022

Strategic Market Intelligence: Life Insurance in Pakistan - Key Trends and Opportunities to 2022 Summary GlobalData's 'Strategic Market Intelligence: Life Insurance in Pakistan - Key Trends and Opportunities to 2022' report provides a detailed outlook by product category for the Pakistani life insurance segment, and a comparison of the Pakistani life insurance with its regional counterparts. It provides values for key performance indicators such as written premium, incurred loss, claims paid, commissions and expenses, combined ratio, total assets, total investment income and net earned premium during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Pakistani econ......
$3999

Strategic Market Intelligence: General Insurance in Pakistan – Key Trends and Opportunities to 2022

Strategic Market Intelligence: General Insurance in Pakistan - Key Trends and Opportunities to 2022 Summary GlobalData's 'Strategic Market Intelligence: General Insurance in Pakistan - Key Trends and Opportunities to 2022' report provides a detailed outlook by product category for the Pakistani general insurance segment, and a comparison of the Pakistani general insurance with its regional counterparts. It provides values for key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and net earned premium during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Pak......
$3999

PESTLE Insights: Macroeconomic Outlook Report – Norway

PESTLE Insights: Macroeconomic Outlook Report - Norway Summary Financial intermediation, real estate and business activities contributed 17.6% to the gross value added (GVA) in 2017, followed by mining, manufacturing and utilities (10.2%), and wholesale, retail and hotels (9.7%). In nominal terms, the three sectors are expected to grow by 6.3%, 4.5% and 5.8%, respectively, in 2018. Over 2018-2029 period, the Norwegian government plans to develop infrastructure by spending NOK1,064 bn (US$128.6 bn) on roads, shipping, railways, aviation, and public transport. Scope - Four major regions in Norway generate around 52.8% of the country's GDP and comprise 27.5% of the country's population - FDI inflows towards Norway has been witnessing a declining trend over the past three years, with mini......
$500

PESTLE Insights: Macroeconomic Outlook Report – Denmark

PESTLE Insights: Macroeconomic Outlook Report - Denmark Summary Financial intermediation, real estate and business activities contributed 25.9% to the gross value added (GVA) in 2017, followed by mining, manufacturing and utilities (17.9%), and wholesale, retail and hotels (15.1%). In nominal terms, the three sectors are expected to grow by 5.6%, 2.9% and 5.4%, respectively, in 2018. To develop the infrastructure of the country, the Government of Denmark has earmarked DKK100.0 bn (US$14.8 bn) to be spent by 2020 to ensure high level of mobility, flexibility and reliability. Scope - Four major provinces generated around 52.8% of the GDP of Denmark and were home to 51.2% of the country's population, as of 2016 - Financial intermediation was the top invested sector in Denmark in 2017 - O......
$500

Employee Benefits in Canada 2018

Employee Benefits in Canada 2018 Summary The Canadian social security system covers various programs, many of which are run by the country's provinces and territories. In general, benefits are similar across all provinces and territories; however, Quebec implements its own pension plan. The government provides financial support to provincial and territorial governments through four main transfer programs - the Canada Health Transfer (CHT), the Canada Social Transfer (CST), and Equalization and Territorial Formula Financing (TFF) - to help them provide social programs and services to citizens. Private employee benefits are gaining popularity, and many companies offer private benefit plans for employees to supplement the government-sponsored hospital and medical plans. The report provides......
$1495

Strategic Market Intelligence: Reinsurance in Pakistan – Key Trends and Opportunities to 2022

Strategic Market Intelligence: Reinsurance in Pakistan - Key Trends and Opportunities to 2022 Summary GlobalData's 'Strategic Market Intelligence: Reinsurance in Pakistan - Key Trends and Opportunities to 2022' report provides a detailed outlook by product category for the Pakistani reinsurance segment, and a comparison of the Pakistani reinsurance with its regional counterparts. It provides values for key performance indicators such as premium accepted, premium ceded, cession rates, and total investment income during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Pakistani economy and demographics, and provides detailed information on the competitive landscape......
$3999

Employee Benefits in Chile 2018

Employee Benefits in Chile 2018 Summary Chile was one of the first countries in the Americas to set up state-sponsored social security coverage. The country's pension system consists of multiple pillars - a non-contributory first pillar, a fully funded second pillar and a voluntary third pillar. In 1981, a new privatized system was introduced to carry out social security schemes. Private sector insurance companies called pension fund managers administer these programs and the state is in charge of the regulations. Under this new system, formal employees are mandated to contribute to the personal account, which is managed by a pension fund manager. The report provides in-depth industry analysis, information and insights of the employee benefits in Chile, including: overview of the state ......
$1495

The Insurance Industry in Namibia, Key Trends and Opportunities to 2022

The Insurance Industry in Namibia, Key Trends and Opportunities to 2022 Summary GlobalData's 'The Insurance Industry in Namibia, Key Trends and Opportunities to 2022' report provides detailed analysis of the market trends, drivers and challenges in the Namibian insurance industry. It provides key performance indicators such as written premium and claims during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Namibian economy and demographics, and provides detailed information on the competitive landscape in the country. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on segment dynamics and......
$1450
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy