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Regional Features of Card Payments in Hungary

Author

Listed:
  • László Kajdi

    (Magyar Nemzeti Bank)

  • István Nemecskó

    (Magyar Nemzeti Bank)

Abstract

In retail trade, card payments currently represent the most important alternative to cash, which is less favourable from a social perspective in the long run. Earlier studies typically focused on the development opportunities of Hungarian electronic payments at the country level only. This study uses previously unavailable data to examine the regional features of card payments in Hungary, identifying the factors influencing their infrastructure and use. The results show that in smaller settlements the acceptor network is less developed and card ownership is lower, while in terms of regions, the situation looks bleaker in Northern Hungary and Central Transdanubia with respect to the POS network, and in the counties of the Great Plain this is the case in relation to card ownership. Card use is significantly influenced by the level of development of the acceptor network as well as the labour market situation. The results reaffirm the necessity of developing the card acquiring network, for example with state-led programmes, and highlight the fact that in smaller settlements and less developed regions, card payments are still not sophisticated enough.

Suggested Citation

  • László Kajdi & István Nemecskó, 2020. "Regional Features of Card Payments in Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 19(1), pages 65-89.
    • Handle: RePEc:mnb:finrev:v:19:y:2020:i:1:p:65-89
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    References listed on IDEAS

    as
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    5. Esselink, Henk & Gijsel, Lola Hernandez-van, 2017. "The use of cash by households in the euro area," Occasional Paper Series 201, European Central Bank.
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    Cited by:

    1. László Kajdi & Milán Kiss, 2022. "The impact of policy effects on the Hungarian payments card market," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(2), pages 107-119, June.

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    More about this item

    Keywords

    payments; card acceptance; regional features;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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