Online payment methods in remote digital commerce continue gaining ground at the expense of traditionally popular offline payment methods in the Czech Republic – cash on delivery and in-store payments. Online card payments are increasing their share of payments across industries thanks to greater consumer trust and the introduction of secure biometric authentication options – face and fingerprint recognition.
With the launch of Apple Pay in the Czech Republic in February 2019, mobile and wearables proximity payments took off and posted strong value growth, particularly in the retailing and foodservice industries. While transportation also saw dynamic growth in mobile proximity payments thanks to several Czech cities operating POS terminals in public transport vehicles, the value is still negligible due to low average transaction values.
In terms of industries, retailing and foodservice still have space to develop in remote, but more so in proximity commerce. Transportation is primarily expected to develop in public and regional transportation systems.
The cooperation between retailers and financial institutions, including banks and fintechs, has given way to a new payment option – deferred payments for online purchases with an interest-free period of up to 45 days. Deferred payments in the Czech market were pioneered a few years back by domestic fintech start-up – Twisto – which incorporated the new payment method into several Czech e-shops.
Czech proximity digital wallet market value exploded with the launch of Apple Pay in February 2019. Banks eagerly jumped on the opportunity and enabled Apple Pay for clients.
Since the market entry of Uber Eats and Wolt in 2018, the Czech food delivery market saw strong competitive development. Restaurant networks are growing not just in Prague but also in other Czech cities such as Brno and Ostrava.
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