28 Jun 2019
Posted in Banking
Czech Republic embracing contactless payment technology supported by wide merchant acceptance and improved infrastructure, says GlobalData
Czech consumers are adopting contactless payments in ever-increasing numbers, with almost every individual now holding a contactless card, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, Payments Landscape in the Czech Republic: Opportunities and Risks to 2022, reveals that the number of contactless cards in the Czech Republic is set to increase from 10.3 million in 2018 to 11.8 million by 2022.
Nikhil Reddy, Payments Analyst for GlobalData, comments: “Czech consumers and financial institutions have embraced contactless, which is becoming a mainstream payment option at supermarkets, grocery stores and restaurants. The technology has been supported by wide merchant acceptance and improved payment infrastructure, with around 90% of the country’s point-of-sale terminals now supporting contactless payments.”
The increasing adoption of contactless cards drove the overall number of card payments in the country, which grew significantly from 483.7 million in 2014 to 1.1 billion in 2018. This number is expected to reach 1.9 billion by 2022. According to the European Payments Council, around 70% of all card payments in the Czech Republic are contactless.
Meanwhile, the use of contactless for public transport is also gaining traction. Major cities and towns such as Litomerice, Pilsen and Ostrava have already integrated contactless payments into their public transport systems, with Brno set to implement this functionality by the end of 2019.
The growing preference for contactless payments among Czech consumers has paved the path for near field communication (NFC) mobile wallets and wearables. Capitalizing on this opportunity, international players such as Google, Garmin and Fitbit have entered the market with their mobile wallets. Apple Pay was the latest to launch in February 2019.
Reddy concludes: “Over the coming years, although contactless cards are expected to remain dominant in the contactless payment space, they are likely to be complemented by NFC mobile wallets and wearables, resulting in a further rise in contactless payments in the country.”