Payment Cards in the Czech Republic 2007

Publication Date	March 2007
Publisher	Datamonitor
Product Type	Report
Pages	82
ISBN Number	not applicable
Product Code	DAT04664

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Summary

Introduction

Payment Cards in the Czech Republic is an invaluable guide to one of Eastern Europe's quickest growing payment card markets. Created using a combination of primary and secondary 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.

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

Highlights

The payment card market in the Czech Republic is small but growing rapidly. At the end of 2005 there were 7 million cards in issue, of which less than ten per cent were revolving credit cards. However, credit cards are the fastest growing segment of the market, with the number of revolving credit cards growing by more than tenfold since 2001

Pay now cards are the most frequently used type of card, In 2005 the average pay now card was used 32 times, compared to the average revolving credit card, which was used just 12 times.

The level of card acceptance in the Czech Republic has grown rapidly in the 2001 to 2005 period but still remains low in comparison to Western European card markets. At the end of 2005 there were 194 people for every POS and 3,005 people for every ATM

Reasons to Purchase

Access detailed information about the Czech payment card market, including cards in issue, transaction volumes and transaction frequency
Understand the structure of the Czech payment card market, including recent regulatory developments and their impact on the market
Learn Datamonitor's forecasts to 2010, specifying card numbers, transaction values and transaction volumes, broken down by card type

Content

Executive Summary
- INTRODUCTION
- What is this report about?
- Scope of the report
- Structure of the report
- MARKET CONTEXT
- Introduction
- Country overview
- Demographics
- Economy
- The Czech Republic still has a large industrial sector
- Structural reform in the Czech economy
- GDP growth has been steady
- Inflation
- Distribution of income (Gini coefficient)
- Market size
- Market penetration
- Cards in issue
- Number of transactions
- Frequency of use
- Value of card transactions
- Average transaction values
- Card acceptance
- POS statistics
- ATM Statistics
- Market structure
- The central bank - Ceska Narodni Banka (CNB)
- Interbank processor
- Commercial Banks
- Building societies
- Credit and savings cooperatives
- Privatization has changed the face of the Czech banking sector
- The influence of foreign investors gave the market a much needed boost
- Consequently, the Czech banking market is dominated by foreign players
- Regulatory environment
- Regulatory bodies
- The Czech National Bank (Department of Banking Regulation and Supervision)
- CNB Banking Supervision uses two basic supervisory methods - off-site surveillance and on-site examinations.
- The Office of Supervision of Savings and Credit Cooperatives
- Banking associations
- Czech Banking Association (CBA)
- Payment Card Association (BCA)
- Credit bureaux
- The Central Register of Credits (CRC)
- Czech Banking Credit Bureau (CBCB)
- Recent regulatory developments
- European Consumer Credit Directive
- Key issues
- Fraud and EMV
- The Czech Republic is advanced in EMV migration
- SEPA
- COMPETITOR AND PRODUCT OVERVIEW
- Card scheme market shares
- Pay now cards
- Cards in issue
- Value of transactions
- Credit cards
- Cards in issue
- Value of transactions
- Deferred debit and charge cards
- Cards in issue
- Value of transactions
- Card issuer market shares
- Pay now cards
- Credit cards
- Deferred debit and charge cards
- Product analysis
- Pay now products
- Revolving credit products
- Introductory offers are uncommon
- APRs continue to fall
- Deferred debit and charge cards
- Product features
- Loyalty progams are slowly being introduced
- Partnership cards are becoming more common
- Product innovations
- Komercni Banka has introduced the E-Card
- Mulit-functional cards have been introduced
- FORECASTING THE PAYMENT CARD MARKET IN THE CZECH REPUBLIC
- Forecasting the pay now market
- Forecasting the credit card market
- Forecasting the deferred debit and charge card market
- SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Appendix
- Supplementary data
- Market context
- Definitions
- Affinity card
- Credit card
- Deferred debit/charge card
- EMV
- EPC
- ePurse
- Interchange
- Merchant Service Charge
- 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: Population distribution by age group in the Czech Republic, 2005
- Table 2: GDP per capita for selected European countries, 2005
- Table 3: Inflation rates in a number of major European markets, 2001-2005
- Table 4: GINI coefficients in Europe, 2001-2003
- Table 5: Ownership statistics of the Czech banking sector, 2001-2005
- Table 6: Major foreign players participating in the Czech banking market, 2005
- Table 7: Fees for pay now cards in the Czech Republic, 2007
- Table 8: Rates and fees for a selection of Czech credit cards, 2007
- Table 9: Prices and benefits of deferred debit and charge cards in the Czech Republic, 2006
- Table 10: Datamonitor's forecast of the pay now card market, 2006f-2010f
- Table 11: Datamonitor's forecast of the credit card market, 2006f-2010f
- Table 12: Datamonitor's forecast of the deferred debit and charge card market, 2006f-2010f
- Table 13: Population numbers and demographic splits in the Czech Republic and other major European countries, 2005
- Table 14: The percentage of people over the age of 20 in the major European countries, 2005
- Table 15: GDP at current prices across major European countries, 2005
- Table 16: Real GDP growth rates, 2001-2005
- Table 17: POS terminals and population per terminal in the Czech Republic, 2001-2005
- Table 18: ATMs and population per ATM in the Czech Republic, 2001-2005
- Table 19: Current relevant Datamonitor publications
- Table 20: Future relevant Datamonitor publications, 2006
List of Figures
- Figure 1: An overview of the Czech Republic, 2005
- Figure 2: In terms of population, the Czech Republic is a small European country, 2005
- Figure 3: The Czech Republic has one of the smallest GDPs in Europe, 2005
- Figure 4: The Czech Republic has a larger industrial sector than most European countries, 2005
- Figure 5: The Czech Republic has seen steady economic growth, 2001-2005
- Figure 6: The Czech Republic has less than one card per person, 2005
- Figure 7: Pay now cards dominate the payment card market in the Czech Republic, 2001-2005
- Figure 8: Pay now cards account for the majority of transaction volumes, Czech Republic, 2001-2005
- Figure 9: Pay now cards have the highest number of transactions per card per year, Czech Republic, 2001-2005
- Figure 10: The value of card transactions has more than doubled, Czech Republic, 2001-2005
- Figure 11: Deferred debit and charge cards have the highest average transaction value, Czech Republic, 2001-2005
- Figure 12: The Czech POS network has grown rapidly, 2001-2005
- Figure 13: The Czech ATM network has expanded, 2001-2005
- Figure 14: Supervisory bodies and professional associations in the Czech Republic, 2005
- Figure 15: Visa has become the dominant pay now scheme, Czech Republic, 2001-2005
- Figure 16: Visa accounts for the majority of pay now transaction value, Czech Republic, 2001-2005
- Figure 17: Most credit cards are issued on the Visa scheme, Czech Republic, 2001-2005
- Figure 18: MasterCard now accounts for the majority of credit card transaction value, Czech Republic, 2001-2005
- Figure 19: American Express is the dominant scheme for deferred debit and charge cards, Czech Republic, 2001-2005
- Figure 20: American Express continues to account for the majority of deferred debit and charge card transaction values, Czech Republic, 2005
- Figure 21: Ceska Sporitelna is the biggest issuer of pay now cards in the Czech Republic, 2005
- Figure 22: Ceska Sporitelna is the biggest issuer of credit cards in the Czech Republic, 2005
- Figure 23: Komercni Banka is the main issuer of deferred debit and charge cards, Czech Republic, 2005
- Figure 24: The National Geographic Card, Czech Republic, 2007
- Figure 25: The Komercni Banka UNIcard, Czech Republic, 2007
- Figure 26: The pay now market will grow steadily, Czech Republic, 2005-2010f
- Figure 27: The credit card segment is forecast to grow rapidly, Czech Republic, 2005-2010f
- Figure 28: The deferred debit and charge card market is set to decline, Czech Republic , 2005-2010f
- Figure 29: The Czech Republic payment card market, SWOT analysis, 2006
- Figure 30: Datamonitor's core consulting capabilities