Introduction
Payment Cards in Hungary is an invaluable guide to one of Eastern Europe' s
quickest growing payment card markets. Created using a combination of
secondary and primary research, this report provides statistics on market
size, market shares and card acceptance. It provides an overview of
regulation, competitor activities and product innovation. It concludes with
market forecasts and a SWOT analysis.
Scope
- The focus of the report is on consumer payment cards, as opposed to
commercial products
- Data and analysis provided on debit cards, credit cards and deferred debit
and charge cards.
- The report parameters extend to issuance only. Merchant acquiring and card
processing are not covered.
- Historic market data is presented from 2001 to 2005, with forecast data
presented to 2010. Competitor market shares are presented for 2005.
Report Highlights
Hungary had the fifth largest payment card market in Central and Eastern
Europe in terms of cards in issue at the end of 2005, growing at an average
annual rate of 9.7 per cent over 2001-2005. The pay now sector continues to
account for the majority of overall transaction value, with 78.9 per cent of
total transaction value at the end of 2005.
Like in other Central and Eastern European card markets, growth has been rapid
in the revolving credit card market in Hungary. Today all major card players
issue at least one co-branded card product in addition to cards linked to a
broad range of loyalty programs, which typically consist of point-based
rewards and discount programs.
The Hungarian retail banking market is highly fragmented. Despite the fact
that there is a large proportion of foreign players operating in the market, a
domestic player - OTP Bank - has maintained its market position as the leading
payment card issuer.
Reasons to Purchase
- Learn how the Hungarian consumer payment card market has developed between
2001 and 2005.
- Understand recent developments in the market in terms of consolidation,
new entrants and product innovations.
- Find out Datamonitor' s opinion on the future growth rate of the Hungarian
payment card markets including debit, credit, deferred debit and charge.
Table of Contents
- EXECUTIVE SUMMARY
- INTRODUCTION
- What is this report about?
- Scope of the report
- Structure of the report
- MARKET CONTEXT
- Introduction
- Country overview
- Demographics
- Economy
- GDP growth in Hungary has been steady
- Inflation
- Distribution of income (Gini coefficient)
- Market size
- Market penetration
- Cards in issue
- Number of transactions
- Value of card transactions
- Average transaction value
- Card acceptance
- POS statistics
- ATM Statistics
- Market structure
- Historical background
- The development of the Hungarian banking sector can be divided into
three major periods
- 1989-1994: economic crisis tests the robustness of the newly created
banking system
- 1995-1998 - privatization process begins
- 1998-present - transformation is nearly completed
- Overview of the current banking system
- The Hungarian banking sector is relatively ' over-banked'
- The structure of the banking system
- The central bank - the National Bank of Hungary
- Commercial banks
- Savings and credit cooperatives
- Credit bureaux
- The process of privatization in the Hungarian banking sector
- However, the government experienced difficulties with privatizing
some of the larger banks
- Since privatization, foreign players have dominated the Hungarian
banking sector
- Regulatory environment
- Current supervisory environment
- Key issues
- COMPETITOR AND PRODUCT OVERVIEW
- Introduction
- Card scheme market shares
- Pay now cards
- Cards in issue
- Value of transactions
- Credit cards
- Cards in issue
- Value of transactions
- Charge and deferred debit cards
- Cards in issue
- Value of transactions
- Card issuer market shares
- Pay now cards
- Credit cards
- Charge and deferred debit cards
- Competitor developments
- Merger & acquisition activity in the Hungarian market has been
moderate in recent years
- Foreign player Erste Bank has singed an agreement with Hungarial
Post to provide retail financial serives
- Another foreign player KBC Bank has increased its stake in Hungarian
K&H bank
- A domestic player, OTB Bank, is looking to expand in Central and
Eastern Europe
- Product analysis
- Credit card design
- Co-branded cards
- Citibank offers various co-branded cards linked to loyalty programs,
including Malév and Shell
- MKB offers Miles & More co-branded card in conjunction with
Lufthansa arilines
- Telecom and retail co-branded cards are becoming more widespread
- Loyalty programs
- Product innovation
- The Hungarian market has seen several innovations
- Budapest Bank offers a unique Lady credit card - only for women
- In addition to Lady credit card, Budapest Bank offers telecom
co-branded card with an innovative mobile payment solution
- Raiffeisen Bank introduced a combined credit-and-debit card
- FORECASTING THE PAYMENT CARD MARKET IN HUNGARY
- Introduction
- Forecasting the pay now card market
- Forecasting the credit card market
- Forecasting the charge and deferred debit card market
- SWOT Analysis
- Strengths
- Weaknesses
- Opportunitites
- Threats
- APPENDIX
- Supplementary data
- Market context
- Forecasting the payment card market in Hungary
- Definitions
- Affinity Card
- Credit Card
- Deferred debit/charge card
- EMV
- EPC
- Pay now cards
- POS Terminal
- Research methodology
- Cards and Payments database
- Future readings
- Datamonitor' s custom research capabilities
- Cards & Payments Team contact details
- How to contact experts in your industry
- List of Tables
- Table 1: GDP per capita for selected European countries, 2005
- Table 2: Inflation rates in a number of major European markets, 2001 -
2005
- Table 3: GINI coefficients in Europe, 2001 - 2003
- Table 4: APRs, credit limits and interest free periods on selected
credit cards in the Hungarian market
- Table 5: Datamonitor' s forecast for the pay now market, 2006f-2010f
- Table 6: Datamonitor' s forecast for the credit card market, 2006f-2010f
- Table 7: Datamonitor' s charge and deferred debit card market forecast,
2006f-2010f
- Table 8: Population numbers and demographic splits in Hungary and
other major European countries, 2005
- Table 9: The percentage of people over the age of 20 in the major
European countries, 2005
- Table 10: GDP at current prices across major European countries, 2005
- Table 11: Real GDP growth rates, 2001-2005
- Table 12: POS terminals and population per terminal in Hungary,
2001-2005
- Table 13: ATM terminals and population per terminal in Hungary,
2001-2005
- Table 14: Card penetration in Europe, 2005
- Table 15: Pay now card forecasts indexed to 2005
- Table 16: Credit card forecasts indexed to 2005
- Table 17: Charge card forecasts indexed to 2005
- Table 18: Current relevant Datamonitor publications
- Table 19: Future relevant Datamonitor publications, 2007
- List of Figures
- Figure 1: Overview of Hungary, 2005
- Figure 2: Population size in European countries, 2005
- Figure 3: GDP in European countries, 2005
- Figure 4: Hungary has a large services sector, 2006
- Figure 5: Hungary has seen steady economic growth, 2001 - 2005
- Figure 6: Hungary has one of the lowest levels of penetration of cards
in Europe, 2005
- Figure 7: Pay now cards dominate the payment card market in Hungary,
2001 - 2005
- Figure 8: Pay now cards account for the majority of transaction
volumes in Hungary, 2001 - 2005
- Figure 9: Frequency of use on pay now cards is low in Hungary, 2001 -
2005
- Figure 10: Pay now cards account for the majority of transaction
volumes in Hungary, 2001 - 2005
- Figure 11: Credit cards have the highest average transaction value in
Hungary, 2001 - 2005
- Figure 12: POS network in Hungary, 2001-2005
- Figure 13: ATM network in Hungary, 2001 - 2005
- Figure 14: The activities of Hungarian banks are carried out under the
supervision of PSZAF, 2004
- Figure 15: MasterCard is the dominant scheme in terms of pay now card
numbers, 2001-2005
- Figure 16: MasterCard is also dominant scheme in terms of pay now
transaction values, 2001-2005
- Figure 17: MasterCard is dominant in terms of the number of credit
cards in issue, 2001-2005
- Figure 18: MasterCard is also dominant in terms of credit card
transaction values, 2001-2005
- Figure 19: MasterCard is dominant in terms of charge and deferred
debit cards numbers, 2001-2005
- Figure 20: MasterCard is also dominant in terms of charge and deferred
debit card transaction values, 2001-2005
- Figure 21: OTP Bank is the leading issuer of pay now cards in Hungary,
2005
- Figure 22: OTP Bank is also the top issuer of credit cards in Hungary,
2005
- Figure 23: OTP Bank is also the top issuer of charge and deferred
debit cards in Hungary, 2005
- Figure 24: A snapshot of the website dedicated to the Lady credit
card, 2007
- Figure 25: The pay now market is forecast to grow steadily in Hungary,
2005-2010f
- Figure 26: The Hungarian credit card market is forecast to grow the
most between 2006 and 2010
- Figure 27: The charge and deferred debit card market is set to decline
over 2006-2010f
- Figure 28: The Hungarian payment card market, SWOT analysis, 2007
- Figure 29: Datamonitor' s core consulting capabilities
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