COVID-19 accelerated digital shift in Poland’s card payment market

This has also boosted the use of payment cards online

COVID-19

COVID-19 accelerated digital shift in Poland’s card payment market. Source: pexels.com

According to GlobalData, Poland’s card payment market has been on the rise for the past few years. It registered a slowdown in 2020 with a growth rate of 9.9% due to COVID-19 as lockdowns reduced consumer and commercial spending,

Nevertheless, the card payments market is expected to grow at a compound annual growth rate of 18.7% between 2021 and 2025 to reach $246.5 billion in 2025.

The report unveils that pandemic has boosted online spending, as wary consumers are staying home and using online platforms to avoid exposing themselves to potential disease vectors. Overall, e-commerce value stood at $24.6 billion in 2020 – an increase of 19.5% for the year.

While cash has traditionally been the most preferred payment method in Poland, consumers are now gradually embracing electronic payments. Government financial inclusion initiatives (such as mandatory availability of basic banking services along with a debit card with zero or minimal costs), improving payment infrastructure and a gradual rise in consumer preference for non-cash payments has driven the growth of card transactions during the past few years. Though the COVID-19 pandemic has impacted consumer spending, it has also highlighted the importance of digital payments, which will push the use of card payments in the country
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData

Along with that, when shopping in-store, consumers have shifted from cash payments to digital payments, particularly contactless cards. FOr instance, in March 2020, the Polish Government raised the contactless payment limit in the country from $13.39 to $26.77 so that consumers could make payments without coming into close contact with POS terminals.

We’ve reported that manufacturers are set to spend over $2.5 billion on simulation software by 2030

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