An expert 2021 report on the Austria cards, payments and consumer banking market, with clear commentary backed by relevant data.
Offered by all the main banks, P2P solution Zoin has become popular; establishment offerings have so far been keeping consumers sufficiently satisfied that the new breed of digital players has not captured their custom.
Card spend grew sharply upon the pandemic's arrival, with the shift away from cash now pronounced and the debit card set to be the main beneficiary. Acquirers are increasingly providing merchants with full-service, fix-it-and-forget-it solutions; more and more, this includes BNPL, which, as in many markets, is gaining traction.
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Profit pool
Appendix V: Card networks
Appendix VI: Key retail banks and issuers
Appendix VII: Acquirers and processing
Appendix VIII: Online acquiring
Demographics and Economy:
Austria's population expansion is due primarily to migration, as births and deaths in the country are largely balanced. As of June 2020, around 1.5 million of the total population were non- Austrian, constituting around 17%.
Card payments are the most popular cashless payment method. At the end of 2019, there were almost 14 million payments cards in use in the country. Of these, over 10 million were debit cards.
Cash remains the predominant payment mode in Austria: this is linked to traditional preferences and debt-averse attitudes. However, payment preferences are gradually changing.
Mobile payments are increasingly popular in Austria but, like most advanced economies, their adoption is mired by consumer apathy. Mobile payment providers have found it difficult incentivising a switch to mobile payments from cards.
In Austria, when revolving credit facilities are used, the monthly rollover rates are low, at around 15% of the outstanding balance in 2020. Due to the low uptake of revolving balance cards. Austria's percentage of credit card outstandings to billed volume is low.
Austria has a competitive credit cards market, with four major international brands – Visa, Mastercard, American Express and Diners Club – having a presence. UnionPay and JCB enjoy wide merchant acceptance in this market. The domestic debit cards market here is a virtual monopoly, with Mastercard accounting for almost all debit cards and transactions.
Key Retail Banks and Issuers:
The payment cards market in Austria is also concentrated among five key players: Bank Austria, Erste Bank, RBI, Volksbank and BAWAG PSK ... they collectively represented vast market share majorities in terms of credit cards in issue and outstandings.
Acquiring and Processing:
Worldline and Card Complete Service Bank together dominate the merchant acquiring market in Austria. Other acquirers include Hobex and Ingenico Payone.
(Austria is one of the largest e-commerce markets in Central Europe, with an estimated internet penetration of 89% in 2019. Total online acquired billed volume reached an estimated $5.1 billion in 2020.
Regulatory and Markets Information:
In Austria, banking and other financial services are regulated by the Austrian Financial Market Authority (FMA), in cooperation with the central bank, OeNB (Oesterreichische Nationalbank). The OeNB monitors the stability
of the financial market at a macro level.
Association for Cooperation in Payment Transfers
Austrian Financial Market Authority
B + S
Card Complete Service Bank
Chief Information Office
Electronic Payment Standard-Transfer
European Banking Authority
European Insurance and Occupational Pension Schemes
European Securities and Markets Authority
Gewerkschaft -ffentlicher Dienst
Ministry of Finance
Pay now by Klarna
Payment Services Austria
Raiffeisen Bank International
Raiffeisen Landesbank Oberösterreich
Reiter Betten und Vorhänge
SIX Payment Services
Uni Markt Handels
Visa Service Kreditkarten
Verisk financial reports deliver detailed market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in Europe. Analysts and researchers use primary and secondary source data and conduct in-depth interviews with senior industry executives and European finance experts.
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