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

New Zealand Cards and Payments – Opportunities and Risks to 2024

New Zealand Cards and Payments - Opportunities and Risks to 2024 Summary GlobalData's 'New Zealand Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in New Zealand's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, cheques, and direct debits during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and ......
$2750

Citigroup – Enterprise Tech Ecosystem Series

Citigroup - Enterprise Tech Ecosystem Series Summary Citigroup is a provider of diversified financial services. Its portfolio of offerings comprises retail, commercial, and investment banking; securities brokerage; trade and securities services; and wealth management solutions. The group provides a range of accounts and deposit services, debit and credit cards, loans and mortgages, small business banking solutions, treasury and trade services, and corporate and institutional lending. Additionally, Citigroup offers securities, asset management, and capital market services. The group has an operational presence in the Americas, Europe, the Middle East, Africa, and Asia Pacific. It serves individuals, high net worth clients, corporate companies, SMEs, and institutional and government client......
$1495

Israel PESTLE Insights – A Macroeconomic Outlook Report

Israel PESTLE Insights - A Macroeconomic Outlook Report Summary Financial intermediation, real estate and business activities contributed 32.5% to the gross value added (GVA) in 2019, followed by mining, manufacturing and utilities (14.6%) and transport, storage and communication (12.6%). According to MarketLine estimates, the three sectors grew by 6.7%, 1.86% and 6.18% respectively in 2019. The overall Israeli stock market index has recorded a downward trend over the past year. Global panic due to the COVID-19 pandemic caused a huge crash in the index in March 2020, but the index recovered between April and June. Scope - Israel's logistic and transport infrastructure deteriorated during 2016-2018, evidenced by a decline in the country's ranking in the Logistic Performance Index from ......
$500

Singapore PESTLE Insights – A Macroeconomic Outlook Report

Singapore PESTLE Insights - A Macroeconomic Outlook Report Summary Singapore's Central region acts as hub for most of the financial and professional services firms. The West region is dominated by port and water transport industry due to its proximity to the port, while the East region is dominated by the airline industry due to its proximity to Changi Airport. Financial intermediation, real estate and business activities contributed 32.5% to the country's gross value added (GVA) in 2019, followed by mining, manufacturing and utilities (22.12%) and wholesale, retail and hotels (19.4%). In nominal terms, the three sectors are expected to decline by -3.12%, -4.9%, and -2.9%, respectively, in 2020. Majority of inward FDI was towards the financial and insurance services sector in 2018 Sc......
$500

Tenpay – Competitor Profile

Tenpay - Competitor Profile Summary Tenpay is the second-largest online payment platform in China, behind only Alipay. It was launched in 2005 by Tencent, China's leading internet company. Tenpay supports online, in-app, and in-store payments both in China and abroad. Tenpay users can make fund transfers to other users' Tenpay accounts or their bank accounts. Users can also make mortgage and credit card payments, and can even invest in various financial products. Tencent also owns popular social media platforms including QQ Messenger and WeChat, and has integrated payment services into these apps called QQ Wallet and WeChat Pay, allowing users to conduct payment transactions directly. Tenpay accounts for around 38.8% of the third-party mobile payments market in China. It is concentrated......
$350

Nicaragua Insurance Industry – Governance, Risk and Compliance

Nicaragua Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Nicaraguan Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Nicaragua. 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 legal sys......
$950

Qatar Insurance Industry – Governance, Risk and Compliance

Qatar Insurance Industry - Governance, Risk and Compliance Summary GlobalData's 'Qatar Insurance Industry - Governance, Risk and Compliance' report is the result of extensive research into the insurance regulatory framework in Qatar. 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 legal system in the co......
$950

Global Motor Insurance Market 2020 – Thematic Research

Global Motor Insurance Market 2020 - Thematic Research Summary GlobalData's 'Global Motor Insurance Market 2020 - Thematic Research' report provides a detailed outlook of the global motor insurance industry. This report provides in-depth market analysis, information, and insights into the global and regional motor insurance industry. It provides values for key performance indicators such as written premium and loss ratio during the review period (2015-2019) and forecast period (2019-2023). The report gives a comprehensive overview of the global and regional motor insurance industry, key trends, drivers, challenges, regulatory overview and developments, and impact of the COVID-19 on the industry. It provides insight into key technological developments impacting the global motor insur......
$3999

Kuwait Cards and Payments – Opportunities and Risks to 2024

Kuwait Cards and Payments - Opportunities and Risks to 2024 Summary GlobalData's 'Kuwait Cards and Payments - Opportunities and Risks to 2024' report provides detailed analysis of market trends in Kuwait's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry including cards and cheques during the review-period (2016-20e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The report brings together GlobalData's ......
$2750

Iran PESTLE Insights – A Macroeconomic Outlook Report

Iran PESTLE Insights - A Macroeconomic Outlook Report Summary Mining, manufacturing and utilities contributed 33.2% to Iran's gross value added (GVA) in 2019, followed by financial intermediation, real estate and business activities (15.6%), and wholesale, retail and hotels (14.9%). Overall, the Tehran Stock Exchange index exhibited a spectacularly sharp growth of 551.6% between July 1st 2019 to July 1st 2020 Scope - According to the Global Competitiveness Index for 2019, Iran's infrastructure was ranked 80th out of 141 nations - Tehran generated around 15.8% of Iran's GDP and comprised 16.6% of the country's population, as of 2019 Reasons to Buy - Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic,......
$500
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