The digital transformation of credit card payments in Eastern Europe

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It’s a digital era that allows consumers to make cardless transactions conveniently. The advent of COVID-19 also played an integral role in changing the payment landscape worldwide. The shift has also been evident in various parts of Eastern Europe. People looking for contactless yet safer banking options switched to digital credit cards.

What is Digital Credit Card?

Digital cards allow users to purchase goods and services without swiping their physical cards. Also known as virtual cards, this contactless payment system uses NFC (Near Field Communication) technology.

A traditional cardholder can activate digital credit card service by downloading supporting e-wallet apps. Once linked with the app, a person can seamlessly use the virtual card on offline POS, e-commerce, credit cards casino sites, and for personal transfers.

Current Market Trends in Eastern European Regions

Digital credit card payment systems entered the Eastern European market in the late 90s. Cut to today, government and financial institutions are making various initiatives to expand the reach of this new-age payment system.

Presumably, digital wallet users will boom from 26.4% to 29.9% by 2024 in Eastern European countries. On the contrary, the number of credit cardholders will grow by only 0.1% in the same year. This data shows that the economy is advancing toward digital payment systems.

The most common payment options in Eastern European countries include

• Paysafecard (Poland, Romania, Czech Republic, Slovakia)
• PayPal (Bulgaria)
• Przelewy24 (Poland)
• American Express (Croatia, Hungary)
• Maestro (Moldova, Belarus)
• Privat24 (Ukraine)
• Mir (Russia)
• Mastercard/Visa (almost all countries)

Digital Payment Adoption Rate Across the Demography

The Eastern European market is versatile socially, culturally, and economically. However, adapting to the advanced payment systems is still challenging. Hence, banking preferences vary across different demographics and businesses in this subregion.

Since the younger generation is more tech-savvy, they have been more openly adopting m-payment systems. Low internet access is a key factor behind the slow adoption rates in certain regions, such as Moldova (76.1%), Bulgaria (71.0%), and Ukraine (67.6%).

Most Preferred Payment Methods in European Countries

Let’s delve into the payment landscape of various East European countries.

Poland

Poland saw a massive spike in online shoppers post-pandemic. That said, nearly 84% of citizens engaged in e-shopping for categories like fashion, toys, furniture, appliances, food, personal care, electronics, and media.

The majority of residents used mobile wallets and payment services for online transactions. The market players in this region are Przelewy24, Payu, Paysafecard, and BLIK.