Bankcard Usage in Hungary

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Bankcard Usage in Hungary

• 2003 - 2007

Presentation by Zdenek Houser, MasterCard Europe
General Manager for Hungary, Slovenia and Croatia
11th December, 2007
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Bankcards Have Come a Long Way
Today 8.2 million bankcards in Hungary (MNB)
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About MasterCard Usage Attitude Research

• 800 respondents
• Interviews in their homes
• 18-64 age group
• All with banking relationship
• 88 of respondents held bankcard(s)
• 83 regular users

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Development of Bankcard Usage

• Main areas of development
• Consumer knowledge
• Usage

Result
Secure, Convenient and Economic use
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Attitude to Bankcard Payment Improved
While in 2003 only 31 of respondents said that
the primary function of bankcards was payment by
2007 it was on the top of the list with 57.
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Frequency of Card Payment increased
In 2003 Hungarians only used their bankcards on
1-2 occassions (1,74 times on average). By today
the monthly occurrence of card payment grew
nearly threefold, 4-5 times monthly.
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With growing transaction numbers
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Number of Cash Withdrawals Stagnate

• In 2007 Hungarians use ATMs 2,76 times on
  average a month. No change since 2003 (2,6 on
  average)!

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Improvement is caused by growing consumer
knowledge

• In 2007 8 out of 10 respondents
• In 2003 5 out of 10 respondents
• identified debit and credit cards correctly

While in 2003 the majority held misconceptions
about fees in 2007 60 knows that card payment
has no fee and 70 knows that ATM use does.
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Motivation what makes people use their card
more frequently?
Multiple answers were possible
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44 of Respondents Mentioned Acceptance was Main
Motivator
6.5 million cardholders (MNB)
Present
Target
min. 65.000 merchant locations (Industry standard)

• 27.000
• merchant locations
• (MNB)

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MasterCard Takes Action Merchant Campaigns

• In campaigns first year

36 increase in POS locations
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35 of Respondents Mentioned Reward Programs as
Main Motivator

• In 2006 the number of Hungarian co-brand cards
  grew by 29 and reached over a million.

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35 of Respondents Mentioned Increased Speed of
Payment as Main Motivator

• Mg. stripe gt EMV chip technology
• Allows
• Offline / online authorization
• Multiple functions such as PayPass

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Credit Card Usage

• 1.6 million credit cards in Hungary (MNB)

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Brand Awarness - Top of Mind
At first unprompted mention of any bankcard brand
MasterCard performs better than any other within
and outside of the MasterCard family of brands.
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Thank you for your attention!

• Zdenek Houser, A MasterCard Europe
  Magyarországért, Horvátországért és Szlovéniáért
  felelos üzleti igazgatója.

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Bankkártya-enciklopédia
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Pénzszállítás és a biztonság (1840-)
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Az elso utazási csekk (1874)
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Az elso fizetokártya (1892)
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Elso kereskedelmi fizetokártyák (1910)
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Fizetokártyák részletfizetésre
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A kártyaelfogadás feltüntetése
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Air Travel Card (1936-)
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A (meg)indító vacsora (1949)
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A kártyák hátlapja a hatvanas években
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A Master Charge megalakulása (1966)
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Fo kártyarendszerek az Egyesült Államokban
(1960-as évek)
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Az elso európai hitelkártya (1965)
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Mágnescsíkok megjelenése a kártyákon (1969)
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Az elso bankjegy-automata (1967)
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Így képzelték a jövo ATM-jeit (1973)
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Arcképes kártyák (1970-)
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A Master Charge meghódítja a légitársaságokat
(1970-es évek)
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Indul a MasterCard (1979)
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További márkajelzések (1977)
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Aranykártyák megjelenése (1981)
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Platinum kártyák (1996)
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Ultimate kártyák (1997)
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Chip a kártyákon (1974)
EMV szabványú chipkártyák 1997-tol

• Roland Morenó a fizetohurokkal

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A magyar kártyasztori kezdete (1988-89)
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• Köszönjük a figyelmet!