Financial Cards in Hungary
Euromonitor International's Financial Cards in Hungary report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
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Tables: 92 | Publication date: Apr 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Outstanding value growth
Financial cards in Hungary developed dynamically over the review period. The number of cards in circulation increased in 2006. Due to the strong growth of value transactions, the number of players focusing on cards increased; this was the main reason for the dynamic performance of financial cards in Hungary over the review period. Moreover, cardholders are becoming more familiar with using their cards, which also helped to stimulate growth in terms of cards in circulation and value transactions.
Debit and credit functions gain importance
The ATM function is the most important in Hungary, as Hungarians mostly use their financial cards to withdraw cash. However, the debit and credit functions gained in importance over the review period. Citibank Zrt introduced the first credit card in Hungary in 1999. For several years after its entry the number of credit cards remained relatively low. Since 2005 however, the number of credit cards increased significantly, which can be attributed to more competition and cardholders becoming more familiar with the new concept.
Cash withdrawal dominates card transactions
The development of financial cards in Hungary was very sudden and strong during the 1990s. To some extent Hungarians were forced to use cards by the government, which made it obligatory for employers to pay their employees’ salaries and wages into bank accounts. Therefore, many Hungarians consider cards only as means of accessing their cash and thus card purchase continued to account for a relatively small value share of transactions in 2006. This is gradually changing because of growing merchant acceptance, but most importantly because cardholders are becoming more used to the idea of card purchase.
OTP Bank NyRt is the leading card issuer
Card acceptance in Hungary is largely based on international brands, of which Mastercard was by far the most important between 2001 and 2005. Mastercard was the card most accepted by merchants in Hungary in 2005.
The largest card issuer in Hungary in 2005 was OTP Bank NyRt. It is the largest retail bank in Hungary and has a long tradition of dealing with consumer credit. Even though the bank successfully safeguarded its leading position among card issuers over the review period, stronger competition saw it lose some share to other issuers. OTP Bank is also the leading player in terms of card acquisitions and it operates an extensive network of ATM and POS terminals.
Financial cards expected to continue to grow
Despite the fast development of financial cards, it is expected that the number of cards in circulation will continue to grow over the forecast period. The main reason for continued growth is the significant number of adults without a debit or credit card in 2006. This indicates that there remains the potential for growth in the number of cards in circulation. Moreover, the number of cardholders that have more than one card is expected to rise over the forecast period; this trend will increasingly become the main engine of growth.
Table of contents
FINANCIAL CARDS IN HUNGARY : MARKET INSIGHT
EXECUTIVE SUMMARY
Outstanding value growth
Debit and credit functions gain importance
Cash withdrawal dominates card transactions
OTP Bank NyRt is the leading card issuer
Financial cards expected to continue to grow
KEY TRENDS AND DEVELOPMENTS
Late development of financial cards in Hungary
Growing affluence helps financial cards grow
Cards considered a means of accessing cash
Low merchant acceptance deters growth of card payments
Tighter regulations to fight card fraud
Internet stimulates product innovation
Affinity cards grow strong
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2006
Table 2 Number of ATMs 2004-2006
Table 3 Disposable Income 2001-2006
Table 4 Consumer Credit 2001-2006
Table 5 Value Lost to Fraud 2001-2006
MARKET DATA
Table 6 Financial Cards: Transactions 2001-2006
Table 7 Financial Cards: Value 2001-2006
Table 8 Financial Cards: Number of Cards in Circulation 2001-2006
Table 9 Financial Cards: Number of Accounts 2001-2006
Table 10 Domestic versus Foreign Spend 2006
Table 11 Financial Cards: Cash Withdrawal versus Card Purchase 2006
Table 12 Card Expenditure by Sector 2006
Table 13 Card Expenditure by Location 2006
Table 14 Financial Cards: Number of Internet Transactions 2001-2006
Table 15 Financial Cards: Internet Transaction Value 2001-2006
Table 16 Financial Cards Forecast: Transactions 2006-2011
Table 17 Financial Cards Forecast: Value 2006-2011
Table 18 Financial Cards Forecast: Number of Cards in Circulation 2006-2011
Table 19 Financial Cards: Forecast Number of Accounts 2006-2011
Table 20 Financial Cards Forecast: Number of Internet Transactions 2006-2011
Table 21 Financial Cards Forecast: Internet Transaction Value 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - HUNGARY
BUDAPEST BANK RT - FINANCIAL CARDS - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Budapest Bank Rt: Key Facts
Summary 2 Budapest Bank Rt: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CIB KöZéP-EURóPAI NEMZETKöZI BANK RT (CENTRAL-EUROPEAN INTERNATIONAL BANK LTD) - FINANCIAL CARDS - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 3 CIB Közép-euröpai Nemzetközi Bank Rt (Central-European International Bank Ltd): Key Facts
Summary 4 CIB Közép-euröpai Nemzetközi Bank Rt (Central-European International Bank Ltd): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
KERESKEDELMI éS HITEL BANK NYRT (K & H) - FINANCIAL CARDS - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Kereskedelmi és Hitel Bank NyRt (K & H): Key Facts
Summary 6 Kereskedelmi és Hitel Bank NyRt (K & H): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
OTP BANK NYRT - FINANCIAL CARDS - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 7 OTP Bank NyRt: Key Facts
Summary 8 OTP Bank NyRt: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ATM TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 22 ATM Cards Sector Performance: 2001-2006
Table 23 ATM Cards Sector Performance: % Growth 2001-2006
Table 24 ATM Cards: Forecast Sector Performance: 2006-2011
Table 25 ATM Cards: Forecast Sector Performance: % Growth 2006-2011
DEBIT TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Debit Cards Sector Performance: 2001-2006
Table 27 Debit Cards Sector Performance: % Growth 2001-2006
Table 28 Debit Cards: Number of Cards by Issuer 2001-2005
Table 29 Debit Cards: Number of cards by Operator 2001-2005
Table 30 Debit Cards Transactions by Acquirer 2001-2005
Table 31 Debit Cards Transaction Value by Operator 2001-2005
Table 32 Debit Cards: Forecast Sector Performance: 2006-2011
Table 33 Debit Cards: Forecast Sector Performance: % Growth 2006-2011
CREDIT CARD TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Credit Cards Sector Performance: 2001-2006
Table 35 Credit Cards Sector Performance: % Growth 2001-2006
Table 36 Personal Credit Cards Sector Performance: 2001-2006
Table 37 Personal Credit Cards Sector Performance: % Growth 2001-2006
Table 38 Corporate Credit Cards: Sector Performance: 2001-2006
Table 39 Corporate Credit Cards: Sector Performance: % Growth 2001-2006
Table 40 Credit Cards: Number of Cards by Issuer 2001-2005
Table 41 Credit Cards: Number of cards by Operator 2001-2005
Table 42 Credit Cards Transactions by Acquirer 2001-2005
Table 43 Credit Cards Transaction Value by Operator 2001-2005
Table 44 Personal Credit Cards Transactions by Acquirer 2001-2005
Table 45 Personal Credit Cards Transaction Value by Operator 2001-2005
Table 46 Corporate Credit Cards Transaction Value by Operator 2001-2005
Table 47 Credit Cards: Forecast Sector Performance: 2006-2011
Table 48 Credit Cards: Forecast Sector Performance: % Growth 2006-2011
Table 49 Personal Credit Cards: Forecast Sector Performance: 2006-2011
Table 50 Personal Credit Cards: Forecast Sector Performance: % Growth 2006-2011
Table 51 Corporate Credit Cards: Forecast Sector Performance: 2006-2011
Table 52 Corporate Credit Cards: Forecast Sector Performance: % Growth 2006-2011
CHARGE CARD TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Charge Cards Sector Performance: 2001-2006
Table 54 Charge Cards Sector Performance: % Growth 2001-2006
Table 55 Personal Charge Cards Sector Performance: 2001-2006
Table 56 Personal Charge Cards Sector Performance: % Growth 2001-2006
Table 57 Corporate Charge Cards: Sector Performance: 2001-2006
Table 58 Corporate Charge Cards: Sector Performance: % Growth 2001-2006
Table 59 Charge Cards: Number of Cards by Issuer 2001-2005
Table 60 Charge Cards: Number of cards by Operator 2001-2005
Table 61 Charge Cards Transactions by Acquirer 2001-2005
Table 62 Charge Cards Transaction Value by Operator 2001-2005
Table 63 Personal Charge Cards Transactions by Acquirer 2001-2005
Table 64 Personal Charge Cards Transaction Value by Operator 2001-2005
Table 65 Corporate Charge Cards Transactions by Acquirer 2001-2005
Table 66 Corporate Charge Cards Transaction Value by Operator 2001-2005
Table 67 Charge Cards: Forecast Sector Performance: 2006-2011
Table 68 Charge Cards: Forecast Sector Performance: % Growth 2006-2011
Table 69 Personal Charge Cards: Forecast Sector Performance: 2006-2011
Table 70 Personal Charge Cards: Forecast Sector Performance: % Growth 2006-2011
Table 71 Corporate Charge Cards: Forecast Sector Performance: 2006-2011
Table 72 Corporate Charge Cards: Forecast Sector Performance: % Growth 2006-2011
PRE-PAID CARD TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 73 Pre-paid Cards Sector Performance: 2001-2006
Table 74 Pre-paid Cards Sector Performance: % Growth 2001-2006
Table 75 Pre-paid Cards: Number of Cards by Issuer 2001-2005
Table 76 Pre-paid Cards: Number of cards by Operator 2001-2005
Table 77 Pre-paid Cards Transaction Value by Operator 2001-2005
Table 78 Pre-paid Cards by Type 2004-2006
Table 79 Pre-paid Cards: Forecast Sector Performance: 2006-2011
Table 80 Pre-paid Cards: Forecast Sector Performance: % Growth 2006-2011
STORE CARD TRANSACTIONS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 81 Store Cards Sector Performance: 2001-2006
Table 82 Store Cards Sector Performance: % Growth 2001-2006
Table 83 Store Cards: Forecast Sector Performance: 2006-2011
Table 84 Store Cards: Forecast Sector Performance: % Growth 2006-2011