It is a serious competitive disadvantage if you cannot pay by card

By: Trademagazin Date: 2024. 08. 05. 12:34

The lack of electronic payment options can cause a serious competitive disadvantage for shops. According to research commissioned by OTP Bank, more and more customers in Hungary prefer bank cards or other electronic payment methods instead of cash. The results of the research highlight that it is crucial for stores to provide electronic payment options in order not to lose customers.

The survey, conducted by Magyar Target Pulzus Média Kutató Kft. on behalf of OTP Bank, showed that 44 percent of Hungarian customers prefer electronic payment. This means that stores that do not offer such options may lose a significant number of customers.

500 Hungarian micro, small and medium-sized enterprises were involved in the research, and it was found that 86 percent of the enterprises offering e-payment already provided this option before the law made it mandatory in certain segments. Although most businesses did not experience a major change, 12 percent reported an increase in the number of customers, and another 12 percent experienced an increase in average cart value.

Businesses that only offer cash payments have faced several problems. According to data from OTP Bank, every third business has experienced that a purchase failed because the customer did not have enough cash or they could not return a larger denomination. These issues highlight how restrictions on cash payments can affect store traffic.

According to the research, more and more businesses are recognizing the advantages of electronic payment solutions. In the first quarter, the number of POS terminals among OTP Bank’s customers increased by nearly 9 percent compared to the same period of the previous year. Additionally, the number of businesses using SimplePay Mobile POS, which allows merchants to use their mobile phone as a terminal, has grown by around 30 percent.