Boston, MA -- (SBWIRE) -- 05/29/2014 -- The Slovak economy remained resilient to the European sovereign debt crisis due to a sound banking system and prudent government spending. Ongoing government reforms in education, training, the labor market, taxation and infrastructure are likely to spur economic growth over the forecast period (2014-2019), which will have a direct impact on the Slovak cards and payments industry.
In terms of overall payment channels, credit transfers held the highest channel share of 85.3% in 2013, followed by direct debits with 12.4%. With consumers shifting to modern electronic payment systems, the channel share of card transactions increased from 1.4% in 2009 to 2.2% in 2013.
The Slovak card payments channel grew both in terms of volume and value during the review period (2009-2013). In terms of the number of cards in circulation, the channel increased from 5.1 million in 2009 to 5.7 million in 2013, during the review period at a compound annual growth rate (CAGR) of 2.83%. Over the forecast period, the card payments channel is anticipated to register a CAGR of 2.37% to reach 6.5 million cards by the end of 2018.
In terms of transaction value, the card payments channel posted a review-period CAGR of 6.32%, rising from EUR16.5 billion (US$22.9 billion) in 2009 to EUR21.0 billion (US$27.9 billion) in 2013. The channel is expected to post a forecast-period CAGR of 3.97%, increasing EUR22.1 billion (US$29.8 billion) in 2014 to EUR25.8 billion (US$36.3 billion) in 2018.
While debit cards remained the preferred payment channel during the review period, the economic crisis and high levels of unemployment opened doors for alternative channels such as charge and prepaid cards. Charge cards are popular among Slovak businesses and are used to meet temporary credit requirements. Moreover, firms can benefit from an interest-free credit period by paying outstanding amounts at the end of the due date. It is anticipated that charge cards will continue to be popular with businesses over the forecast period.

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Report Highlights

- The Slovak card payments channel grew both in terms of volume and value during the review period (2009-2013). In terms of the number of cards in circulation, the channel increased from 5.1 million in 2009 to 5.7 million in 2013, during the review period at a compound annual growth rate (CAGR) of 2.83%. Over the forecast period, the card payments channel is anticipated to register a CAGR of 2.37% to reach 6.5 million cards by the end of 2018.
- In terms of transaction value, the card payments channel posted a review-period CAGR of 6.32%, rising from EUR16.5 billion (US$22.9 billion) in 2009 to EUR21.0 billion (US$27.9 billion) in 2013. The channel is expected to post a forecast-period CAGR of 3.97%, increasing EUR22.1 billion (US$29.8 billion) in 2014 to EUR25.8 billion (US$36.3 billion) in 2018.

Companies Mentioned in this Report: Tatra Banka, Slovenska sporite??a, Ceskoslovenska Obchodni Banka, Sberbank Slovakia, VUB Banka, MasterCard, Visa

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