Change in trend

According to MasterCard, a change has taken place in the trend seen since the introduction of bank cards in 1995, as 2007 was the first year when card holders used their cards for payment on more occasions than for cash withdrawal. While the total number of payments was only 99 million out of a total of 208 million transactions in 2006, there were 126 million POS transactions and 116 million ATM transactions in 2007. The number of payments has been rising three times faster in the last three years than in preceding years. While only 31 per cent of people interviewed in 2003 regarded payment as the primary function of cards, this percentage has risen to 57 by 2007. Bank cards were used for payment on 1.74 occasions per month on average, this frequency has increased to 4-5 occasions per month by 2007. Debit cards are used on six occasions per month, while credit cards are used only 3-4 times per month. 35 per cent of the users interviewed said that the main advantage of bank cards is that less cash is used. Eight out of ten users gave correct answers to question regarding the details of using cards. Over 60 percent of users know that domestic payments are free of charge and 70 percent know that cash withdrawal costs money. 38 percent still believe that there is a charge for payments effected abroad. Credit cards have been one of the biggest success stories in recent years, with over 1,6 million issued. 31 percent of users take advantage of the interest-free period, paying back credit in full, while only mandatory payments are completed by 16 percent. Hyper markets, pharmacies and petrol stations remain the most frequented places of use. Further momentum would be imparted to development of the market if more discounts were available when cards are used, like those offered with co-branded cards, of which over 1 million have already been issued. However, the number of retailers who accept cards is still low, remaining under 50 percent of the desired level in 2007. A campaign has been launched by MasterCard to encourage retailers to accept bank cards. Customers using MasterCard or Maestro during the campaign participate in a prize game. According to a survey, 53 percent of retailers begin accepting cards upon pressure from customers. While there are 160 places per ten thousand people where cards are welcome in Slovenia, this number is only 29 in Hungary. Even Slovakia is doing better, with 43 places per 10,000 people accepting cards in 2007. The European average is 60 places per 10,000 people. Cards are accepted only vary rarely in smaller stores. However, research has shown that 98 percent of retailers are satisfied with their decision to accept cards. 16 percent of the 821 retailers interviewed in the survey who refuse to accept cards at the moment, are aware of the business lost owing to the absence of this possibility. According to data from them, 6 percent of customers change their minds when they are informed that cards are not accepted. It is no surprise that 57 percent of these retailers plan to begin accepting banks cards within a year.