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The Cards and Payments Industry in Poland: Emerging trends and opportunities to 2020
Poland is one of the most advanced and innovative markets in Europe, offering consumers broad access to the latest technology in electronic payments. Nevertheless cash is still very popular, accounting for 64.1% of the total payment transaction volume in 2016. Payment card use is rising as consumers enthusiastically embrace new technologies, moving from cash to payment cards to contactless. Although cash is very much the dominant means of payment, there was huge growth in the volume of debit card transactions during the review period (2012-16). This more than doubled between 2012 and 2016, as consumers' preferred debt-free payments and avoided unnecessary expenditure.
Poland made substantial progress in terms of financial inclusion, with the percentage of the Polish population aged 15 or above with a bank account increasing from 72.9% in 2012 to 81.7% in 2016. The government has also encouraged businesses to open bank accounts for employees, and salaries are now paid into bank accounts, resulting in an increase in the number of debit cards in circulation. It is also focusing on using electronic modes of payment to distribute pension and other retirement benefits. In Poland, nearly 65% of senior citizens receive their pensions and other retirement benefits through a bank account.
The credit card market declined during the review period in terms of the number of cards in circulation, as Polish consumers prefer to maintain a cautious stance towards debt. The growth was halted at the end of 2010, as non-performing loans rose. The T-Recommendation issued by the Financial Supervisory Commission in Poland took effect in August 2010, restricting consumer access to bank loans and consumer credit; consequently, consumers faced more stringent scrutiny when applying for a credit card. The change in regulation imposed additional requirements on banks to check the creditworthiness of new customers. Issuers also deactivated inactive cards, resulting in a decline in credit card circulation.
The fast-growing e-commerce market is in turn driving growth in Poland's payment cards market. E-commerce registered a CAGR of 20.0% during 2012-16, growing from $4.1bn (PLN17.2bn) in 2012 to $8.5bn (PLN35.8bn) in 2016. Conventional instruments - including payment cards - remain the preferred mode of payments for e-commerce transactions, accounting for 60.3% of the total e-commerce transaction value in 2016.
The report "The Cards and Payments Industry in Poland: Emerging trends and opportunities to 2020" provides top-level market analysis, information and insights into the Polish cards and payments industry, including -
- Current and forecast values for each market in the Polish cards and payments industry, including debit, credit and charge cards.
- Detailed insights into payment instruments including credit transfers, cash, cheques, direct debit, and payment cards. 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 Polish 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: Alior Bank, Millennium Bank, Bank Zachodni WBK, mBank, ING Bank Slaski, PKO Bank Polski, Bank Pekao, Crédit Agricole, Citi Handlowy, EVO, FirstData, Elavon, Visa, Mastercard, American Express.
- Poland was one of Europe's early adopters of contactless technology, and consumers are among the highest users of contactless payments. Contactless payments are gaining prominence in Poland with all major banks including PKO Bank Polski, mBank, Bank Zachodni WBK, and Bank Pekao now offering contactless cards. For instance, Deutsche Bank Poland introduced Mastercard Standard Debit Card, a contactless card in January 2016. The number of contactless payment cards increased significantly from 15.1 million in 2012 to 28.3 million in 2016, and is anticipated to reach 33.6 million by 2020. With the growing number of retailers in Poland accepting contactless payments, plans are in place for all POS terminals to support the technology by the end of 2017. According to the European Payments Council (EPC), at the end of Q1 2016, 86.4% of POS terminals in Poland accepted contactless payments. Contactless technology is also being extended for cash withdrawals.
- With Polish consumers being enthusiastic adopters of new technologies, payment solution providers have launched new solutions in the market. The latest is the launch of Android Pay by Google in November 2016, supported by Alior Bank, Bank Zachodni WBK, and T-Mobile Banking Services. However, the most significant development was the launch of Blik, a mobile payments service, in February 2015. Blik was formed by the Polish Payment Standard, a company set up by six Polish banks: Alior Bank, Millennium Bank, Bank Zachodni WBK, mBank, ING Bank Slaski, and PKO Bank Polski. Blik enables consumers to pay with their mobile devices instore and online and also enables peer-to-peer (P2P) transfers.
- To offer a convenient and faster checkout option for online shoppers, in February 2016 Visa launched Visa Checkout in Poland. The solution stores users' payment and shipping details and provides faster checkout on partner merchants' websites or apps. Earlier in August 2015 PayPal expanded its One Touch instant checkout service to Poland, which can be activated from the PayPal website and used to skip the login process at eligible websites to accelerate the payment process.
Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Polish cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Polish cards and payments industry.
- Assess the competitive dynamics in the Polish cards and payments industry.
- Gain insights into marketing strategies used for various card types in Poland.
- Gain insights into key regulations governing the Polish cards and payments industry.