Card acceptance also boosts business

It is considered now a basic service

Card acceptance has become a standard service for the majority of merchants and service providers, with a huge growth in the number of card acceptance locations over the past three years. According to the data of OTP Bank, the Hungarian electronic payments market has grown by 20-30 percent in each quarter compared to the same period of the previous year. This was influenced by several factors, as from 1st of January 2021, businesses using online cash registers had to provide some form of electronic payment. In addition, the coronavirus epidemic has also had an impact on changing payment habits, leading to an increasing demand for fast, easy and secure payment options. However, the growth in the number of merchants and service providers offering card acceptance is not in line with the growth in customer demand.  

Although there is a steady increase in the number of places offering electronic payment, many merchants and service providers are not yet ready to meet the increased consumer demand. A recent survey commissioned by OTP Bank, for example, showed that on holiday, cardholders were not able to pay by card in as many places as they would have like to. The number of people who would pay by card was 22% higher than the number who has actually been able to pay by card at market vendors, 21% higher at wellness and sports services and 17% higher at beaches. As a result, 43% of adults with a debit card have had to refrain from buying goods because they were not able to pay electronically.  This is not only inconvenient for consumers, but also for traders, as they may lose revenue. According to OTP Bank experts, card acceptance also affects the average basket value.  With cash, customers can only spend as much as they have in their wallets. In comparison, the amount available behind a debit card is generally higher, which means that the customer is less restricted in the type and amount of products he or she can buy at once. 

Many customers fear e-payment is not an option

„For many customers, paying in cash is not a choice, but a necessity. A recent survey reveals that half of those who prefer to pay in cash insist on using cash because they fear that merchants will not provide electronic payment. The consequence is that customers will, if they have the choice, choose traders or service providers who wouldn’t make things difficult for them. This will allow competition between merchants and service providers not only in terms of price and quality, as the availability of electronic payment options will also be more prominent among the criteria of customers’ choice”

– said Noémi Hideg, Head of Card Acceptance Services and ATM Management at OTP Bank.

OTP Bank provides a variety of solutions for creating electronic payment options for merchants. For sales income above HUF 30 million, OTP Bank recommends the use of the POS-terminal known to most merchants and customers. The terminal able to accept SZÉP cards,  and merchants do not have to pay for installation, maintenance and ongoing service in addition to the rental fee, so they don’t have to worry about extra costs. The maintenance service is available 24 hours a day, 7 days a week, to make the service a true cash substitute. For start-ups or companies with an annual turnover of less than HUF 30 million, SimpleBusiness can be a good solution for merchants and service providers. It is a phone application that enables Android phones with an NFC chip to accept payments by phone or credit card. Moreover, the application also allows QR code payments and instant transfer payments. 

The information is not exhaustive and does not constitute an offer, it is intended solely to attract attention. Detailed information on the conditions of the above products and services is available through the known channels. OTP Bank reserves the right to modify the conditions of the products and services described in this notice.

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