Payment Cards in Poland

Payment Cards in Poland is a guide to one of Europe's most dynamic payment card markets. The report provides statistics on market size, competitor market shares and forecasts. It also provides an overview of regulations, competitor activities, issuer strategy, product innovation, consumer segmentation and includes developments in contactless, mobile, and online payments as well as prepaid cards.

Features and benefits

• Market sizing, competitor shares and forecasts are an invaluable guide for any cards player building a business case for activity in Poland.
• In-depth insight into contactless, mobile, prepaid and online payments highlights future opportunities for all industry stakeholders.
• Detailed analysis of consumer segmentation allows issuers to target consumers with inside knowledge of their true behavior and needs.
• An overview of Poland's regulatory framework allows current and prospective players to understand the regulatory environment and its implications.

Highlights

The number of payment cards in Poland recorded a CAGR of 7.6% between 2006 and 2010. However, this increase was not steady, as the total number of cards reached a peak in 2009 at 33.4 million. In 2010 there was a decline of 4.2% but this was in pay later cards only, with the number of pay now cards increasing by 3.5% between 2009 and 2010.

Of the 10 biggest players in the Polish market, Polish-owned PKO Bank Polski is the biggest with an estimated 13.4% share of the card market. However, six of the top 10 market players are foreign owned, including Bank Pekao, BRE Bank, ING Bank, Bank Millennium, Citibank Handlowy, and Kredyt Bank.

Alternative payments show strong potential in Poland and providers have been proactive in terms of conducting trials, but at present all these new technologies are in the formative stages. Alternative payments include online, contactless, prepaid, and mobile channels.

Your key questions answered

• Which card segments are showing the fastest growth in the Polish payments market and why?
• Who are the key players in Polish card payments and what is their market share?
• How do Polish and EU regulatory changes impact the payment cards sector?
• How extensive are mobile, online, prepaid and contactless payments and where does future growth lie?

Table Of Contents

OVERVIEW
Catalyst
Summary

EXECUTIVE SUMMARY
Sizing and forecasting the payment card market in Poland
Regulatory and acquiring and processing environment
Competitor and product developments in Poland
Polish credit card consumer segments
Online, contactless, prepaid, and mobile payments

SIZING AND FORECASTING THE PAYMENT CARD MARKET IN POLAND
Overview
Key macroeconomic and consumer data
Macroeconomic trends and performance
Sizing the payment card market in Poland
Size and performance of the payment card market
Payment card penetration
Number of payment card transactions
Value of payment card transactions
Trends in payment card use compared to other countries
Credit card balances outstanding, revolve rates, and repayment behavior
Forecasting the payment card market in Poland
Forecasting the pay now card market
Forecasting the credit card market
Forecasting the charge card market

COMPETITOR AND PRODUCT DEVELOPMENTS IN POLAND
Overview
The competitive landscape
(Untitled sub-section)
Key competitors
(Untitled sub-section)
Card issuer market shares and performance
Credit card market shares
Credit card transaction volumes and values by brand
Balances outstanding by issuer
Credit card branding and usage
Frequency of use by brand
Credit card product features
Leading revolving credit products and price points
Typical loyalty programs
Consumer satisfaction by credit card brand
Pay now card market shares
Charge/deferred debit card market shares
Card scheme market shares
Pay now card scheme shares
Credit card scheme shares
Charge/deferred debit card scheme shares

REGULATORY AND ACQUIRING ENVIRONMENT
Overview
Regulatory environment: key institutions and players
Industry regulators
Industry associations
Credit bureaux
Recent legislation
SEPA
Acquiring and processing environment
Processing providers
Interchange fees in Poland

POLISH CREDIT CARD CONSUMERS
Overview
Understanding consumer profiles provides opportunities for issuers to gain market share
Credit card holder demographics
The proportion of consumers with a credit card increases with age
Credit card holding by income range
Revolver/transactor breakdown
Financial product holding
94% of Polish consumers have a current account
Multiple card holding by consumer category
Credit card application methods
Pre-application research
Traditional distribution channels such as branches and shops are decreasing in popularity in favor of online methods
Online applications by age
Card switching
Likelihood of switching cards
Reasons for not switching
83% of card holders are unlikely to switch because their existing card meets their needs
Key factors in new card selection
Consumer attitudes to product features
Features held vs features wanted
Transactors: features held vs features wanted
Revolvers: features held vs features wanted

CONTACTLESS, MOBILE, ONLINE, AND PREPAID PAYMENTS
Overview
Contactless payments in Poland represent a €39.0bn opportunity
Poland is the eighth largest market in terms of potential opportunity for contactless payments in Europe
Convenience stores offer the largest opportunity for contactless payments, but have witnessed relatively few developments
Forecourt non-fuel represents the third largest opportunity
Polish consumers are generally enthusiastic about using contactless technology
25.5% of active contactless card users report positive experiences
Mobile payments remain in an early stage of development in Poland
Mobile based payments have already launched in Poland
Online payments in Poland are growing
The online payments market in Poland is estimated at €8.4bn
Personal credit cards account for the majority of online transactions in Poland
57% of Polish consumers stated that credit cards help them to finance purchases better
Prepaid
(Untitled sub-section)
Examples of prepaid cards on offer

APPENDIX
Supplementary data
Definitions
(Untitled sub-section)
Methodology
Cards and payments database
FSCI is new to our offering, providing new and valuable insight
Forecasting methodology
Further reading
Ask the analyst
Disclaimer

List Of Tables

Table: Poland: macroeconomic indicators
Table: Poland: demographic and consumer trends
Table: Pay now cards, 2011–15f
Table: Growth in credit cards, 2011–15f
Table: Growth in charge and deferred debit cards, 2011–15f
Table: Fees and APRs applicable to revolving credit cards in Poland
Table: Domestic interchange reimbursement fees (%)
Table: Interchange fees for Visa consumer cards
Table: Interchange fees for Visa commercial cards
Table: Credit card features that Polish consumers who are likely to switch cards look for
Table: Credit card features that Polish consumers have or want
Table: Method of card application in Poland, 2009–11
Table: Polish consumers' satisfaction with their bank's customer service

List Of Figures

Figure: The Polish economy is the third largest in Eastern Europe
Figure: Poland avoided entering recession during the global financial crisis
Figure: The use of cards when paying for goods and services is increasing in Poland
Figure: The Polish unemployment rate is lower than the regional average
Figure: Inflation in Poland peaked in 2008 at 4.2%
Figure: Card penetration rates in Poland are low relative to other Eastern European countries
Figure: Poland experienced high growth in the penetration of pay now cards between 2006 and 2010
Figure: Pay later card penetration in Poland grew by 7.5% between 2006 and 2010
Figure: The number of pay now cards in Poland increased continuously between 2006 and 2010
Figure: The number of payment card transactions increased steadily between 2006 and 2010
Figure: The number of transactions at the POS steadily increased between 2006 and 2010
Figure: Polish consumers are more likely to use pay now cards to purchase food and drink
Figure: Pay now cards are the most commonly used card type in Poland
Figure: The frequency of use of cards at the POS grew quickly between 2006 and 2010
Figure: The value of transactions in Poland grew at a CAGR of 12.7% between 2006 and 2010
Figure: The value of POS transactions is gradually increasing
Figure: Motor fuel accounts for 10.7% of the total value of pay later transactions
Figure: Transactions using charge and deferred debit cards are of the highest average value
Figure: The average transaction value at ATMs increased steadily between 2006 and 2010
Figure: Polish consumers use pay now cards at the POS more often than the Eastern European average
Figure: Poland's total turnover per pay now card was €3,517 in 2010
Figure: Poland's frequency of use and average transaction value for pay later cards are lower than the regional average
Figure: Poland has a relatively low average turnover per pay later card
Figure: Across all countries, pay later spending is highest on airline and hotel bookings
Figure: 63.3% of credit cards in Poland are considered primary cards
Figure: 44.4% of credit cards in Poland are used all the time
Figure: Poland's balance outstanding on credit cards was €3.7bn in 2010
Figure: 48.2% of Polish consumers pay off their credit card balance in full every month
Figure: The number of ATMs steadily increased between 2006 and 2010
Figure: The number of POS terminals steadily increased between 2006 and 2010
Figure: The number of pay now cards in Poland is forecast to increase by 2.5% between 2011 and 2015
Figure: The number of credit cards in Poland is expected to increase at a CAGR of 4.4%
Figure: The charge card market is forecast to decline between 2011 and 2015
Figure: Lukas Bank is the largest provider of credit cards in Poland
Figure: Citibank Handlowy dominates the Polish market in terms of the value of transactions
Figure: Consumers at Kredyt Bank have the highest average balance per credit card
Figure: Citibank Handlowy has the highest proportion of gold card customers
Figure: ING Bank Slaski has the highest primacy level among its customers
Figure: Customers of Citibank Handlowy use their credit cards with the highest frequency
Figure: Cashback is the most common credit card feature in Poland
Figure: 25% of Kredyt Bank’s customers are very satisfied with their bank's customer service
Figure: Kredyt Bank has the highest proportion of customers who are very satisfied with their credit card product, at 38%
Figure: 63% of Kredyt Bank customers would recommend their credit cards to others
Figure: The pay now market is dominated by PKO Bank Polski in terms of the number of cards
Figure: PKO Bank Polski has the highest value and number of pay now card transactions
Figure: Bank Pekao accounts for 50.2% of the charge/deferred debit card market
Figure: Bank Pekao has the largest value and number of charge card transactions
Figure: The Polish pay now card market is dominated by Visa and MasterCard
Figure: Visa experienced a CAGR of 15.0% between 2006 and 2010
Figure: The number of Visa-branded credit cards declined by 19.4% between 2009 and 2010
Figure: MasterCard's value of credit card transactions exceeded that of Visa in 2010
Figure: The number of charge cards in Poland declined at a CAGR of 11.9% between 2006 and 2010
Figure: The value of charge card transactions declined by -8.1% between 2006 and 2010
Figure: Consumers aged 65 and over have the highest penetration of credit cards in Poland, at 71%
Figure: 74% of Polish credit card customers have an annual income of under PLN84,999 (€19,125)
Figure: 57% of credit card customers in Poland are transactors, compared to 43% of revolvers
Figure: Current accounts hold the highest penetration rate at 94%
Figure: 78% of transactors and 61% of revolvers hold one card
Figure: 44% of Polish consumers consult with staff in-branch when looking for a credit card
Figure: Only 27% of Polish credit card customers applied for an account in a bank branch in 2011, compared to 55% in 2010
Figure: 50% of Polish credit card customers in the 35–44 and 55–64 age ranges applied for their credit card online in 2011
Figure: Overall, 57% of the Polish customers surveyed were very unlikely to look for a new credit card in the next six months
Figure: 83% of Polish customers are uninterested in a new credit card due to satisfaction with their current card
Figure: 82% of Polish consumers who are likely to switch credit cards seek low annual fees
Figure: For 33% of revolvers and 32% of transactors, their credit card came with their account
Figure: In total, 45% of consumers want loyalty or other rewards compared to 17% who currently have such features
Figure: 70% of Polish transactors have cashback, compared to 50% who want it
Figure: 71% of revolvers have cashback, compared to 68% who want it
Figure: Contactless payments represent a $38.9bn opportunity in Poland
Figure: Convenience stores offer the biggest opportunity for contactless payments in Poland, at $26.7bn
Figure: 41% of card holders in Poland are interested in acquiring a contactless card
Figure: 25.5% of contactless card holders in Poland use their card frequently and find it helpful
Figure: 12% of consumers already have the ability to perform core banking activities on a mobile device
Figure: If offered by their bank, consumers would use a mobile application that allows them to check their balance most frequently
Figure: Credit cards are the most popular online payment method in Poland, with a market share of 39.2%
Figure: Airline and hotel bookings accounted for 10.8% of online spending in 2011
Figure: The value of online commerce per adult in Poland was €1,868 in 2011
Figure: Poland has the 10th largest proportion of online spending through credit cards, at 39%
Figure: Only 5% of online spending in Poland is made through debit cards
Figure: Preferring to browse items in a shop is the biggest reason for not shopping online, at 25%
Figure: 17.3% of those who use PayPal to make online purchases stated comfort as a key factor
Figure: 35.5% of the Polish prepaid cards in issue are Maestro Prepaid-branded
Figure: 64% of Maestro Prepaid card holders use their card for regular spending
Figure: 34.6% of prepaid cards cannot be topped up, while over one third are used to receive salaries
Figure: 60% of Polish consumers have no need for prepaid cards