Austria Country Report

Austria Payments Research | Country Report

A comprehensive overview of the cards, payments and consumer banking market in Austria.

AUSTRIA CARDS & PAYMENTS REPORT | KEY FACTS

• Consumer indebtedness is relatively low in Austria with many consumers preferring to finance large purchases through savings.
• Cash use is high by European standards with some reports suggesting that four out of five consumer transactions are cash-based.
• Revolving facilities on credit cards are rarely used by Austrians. Fewer than two per cent of households carry credit card debt.
• Deferred debit cards are the preferred pay-later cards which, when combined with overdraft facilities, offer a cheaper alternative to revolving credit cards.
• The rollover rate on Austrian credit card outstandings was estimated at just 14.5 per cent in 2016.
• Net interest income accounts for less than five per cent of credit card revenue. Issuers are unusually dependent on fee-based income.
• Debit cards are more widespread than credit cards in Austria and are used on average six times per month compared to 3.8 times for credit cards.
• Mastercard is the leading card network. It holds a narrow lead over Visa in the credit card segment and has a virtual monopoly in debit cards through its Maestro brand.
• Banks in Austria primarily issue credit cards through two centralised card companies, Paylife and Card Complete.
• Six Payment Services and Card Complete dominate the merchant acquiring market. These two companies previously held exclusive licences to acquire for Mastercard and Visa respectively, but the market has since opened up.