PAYMENTS IN SLOVAKIA
Slovakia is a parliamentary democratic republic with a multi-party system. Slovakia became a member of the European Union in 2004 and the euro zone in 2009.
With Slovakia already one of the most prolific markets for contactless payments in the CEE region, Slovakians are avid users of mobile payments through a range of apps and bank mobile platforms. Overall in 2020, domestically issued payment cards were used to make more than 36.2 million mobile payments, and the total value of these transactions was almost €781 million. Mobile payments are expected to accelerate over the next few years as Slovakia ramps up FinTech investments.
Slovakia is an attractive country for foreign investors mainly because of its low wages, low tax rates, educated labour force, favourable geographic location in the heart of Central Europe, strong political stability and good international relations. Slovakian regulators are preparing for the country to become a FinTech hub in the CEE region, with the launch of a development sandbox being rolled out. Slovakia is aiming to become a prime destination for FinTech firms, particularly those that previously were based in the UK pre-Brexit and are now relocating to EU countries.
The adoption of the revised Payment Services Directive, PSD2, and disruptive technologies have set the stage for digital payments for the digital economy in Slovakia. They have accelerated digital payment transformation and mobile payment services, as well as cardless IBAN-based payments directly from bank accounts.
In the last decade, Slovakian consumers have embraced mobile devices such as tablets, smartphones and Internet of Things (IoT). This change significantly impacts their shopping experience. Consumers have become increasingly connected and they have started to purchase anywhere, at any time, from any device.
In addition, new consumer demands are a game changer. Slovakian consumers like digital banking apps with access to all their accounts at different banks in one single app, with the option to make payments directly from their bank account of choice. Additionally, they appreciate more banking services and payment services added to their mobile banking app. Consumer adoption of digital payments in Slovakia is driven by minimal cost, secure payments and a high level of user convenience.
Driven by the development of social media and mobile devices, the emergence of permanently connected consumers has impacted their interactions with brands but also their expectations of how to shop using the increasing number of touch points between consumers and merchants, e.g.:
- Using mobile devices in-store to look up products or additional information on the internet
- Using mobile devices in-store to shop at the same merchant or online at another merchant
- Using mobile devices to purchase at home in online shops or scan outdoor for advertised products
- Using mobile apps to shop online, or using QR-codes to bridge from merchant posters to their online shops
The ongoing rollout of a mature online and mobile communication infrastructure is an enabler for digital card payment transformation and for Open Banking payments in Slovakia.
In a few years from now, mobile banking apps and mobile payment apps are expected to combine account management, digital payment services, personal finance management and value-added digital services from location finders to digital vouchers.
Cash payments, card payments and cardless payments directly from bank accounts (A2A payments) remain all relevant for Slovakian merchants and are heavily used by Slovakian consumers.
This country profile provides an introduction into two competing payment ecosystems in Slovakia:
- Card payment ecosystem
- Cardless Open Banking payment ecosystem
STATISTICAL KEY FIGURES FOR 2020 PROVIDED IN THIS PROFILE:
• UPDATED: tables with card business data 2016-2020; growth rates: Y-o-Y, CAGR
• Population, Cards per Capita, Card Value per Capita
• Debit Cards, Credit/Delayed Debit Cards, Total Cards
• Card payments by number and by value, ATV per card, payments per card/year
• ATMs, POS terminals, ATMs/POS terminals per 1 million capita
• ATM withdrawals by number/by value, ATV per withdrawal, TXs per ATM/month
• POS payments by number/by value, ATV per POS payment, TXs per POS/month
• Internet Use, e-payment mix, B2C e-Commerce by value and growth rate
• Issued Card brands by individual major issuer bank
• Accepted card brands by individual major acquirer
• Drill down into the debit card use and credit cards use details
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Version 1.0 - last updated Wednesday 26th January 2022