Czech Republic Leading the Way on Contactless Card Payments
- New Europe Investor
- February 23, 2015
New data from Visa Europe has shown that the Czech Republic is by far the leading country in the European Union for contactless card payments.
The data shows the country is first in terms of frequency of payments. In addition, average spend per capita is significantly greater than any other country in the EU.
On average Czechs use the payment method 3.3 times per month per head of population. Second is Poland with 2.4 transactions per month and third, Slovakia with 1.3 transactions per month.
There have been 2.6 million contactless visa cards issued in Czech Republic. This is only 200,000 less than that of Germany, whose population is nearly eight times that of Czech.
Czech’s spend €64.20 per month per card issued, beating that of Spain in second place on €16, and Poland on €15.20.
Growth and Opportunities
According to Novinky, the volume of contactless card payments increased by nearly 380% The Czech Republic in 2014.
In absolute numbers Great Britain leads the way on contactless card payments with 41 million, according to Visa Europe.
The application of this growth will likely be seen in a variety of areas. Novinky reports that Visa is partnering with transport systems in The Czech Republic, and are looking at major cities such as Brno, Prague and Ostrava. They hope to launch a contactless payment card system on the intercity and suburban bus networks there.
Smart Card Alliance states on its website that “The mass market introduction of the contactless technology is an important event for the payments industry. Contactless payments are already providing benefits to consumers and retailers alike, in terms of higher levels of control and convenience for consumers, and higher throughput for retailers. And these benefits are just the tip of the iceberg.”
The technology was first introduced in 1997 in the U.S. at Mobil petrol stations, but only in recent years has it achieved mass market appeal.