Bankcard use growing in Hungary

In Hungary

The numbers of Hungarians using bank cards and private bank accounts have been growing, while the habit of drawing cash from ATMs is stagnating, business daily Világgazdaság reports, citing data from the Hungarian National Bank (MNB).

Domestic cardholders made purchases in Hungary and abroad more than 385 million times in total in Q1-Q3, spending HUF 2,844 trillion. That accounts for an increase of 25% compared to the previous year. Fewer than 80 million visits were made to ATMs to withdraw cash, a drop from 2015.

The number of bankcards in circulation has also gone up this year, and by the end of September it had surpassed the nine million mark for the first time. Most were debit cards, whilst credit cards represented a mere 15% of the total.

Credit card holders are becoming more conscious of product-related benefits, which they increasingly take advantage of. At the same time, they strive to avoid the average 30%-interest charged on late payments.

Accepting cards is also becoming more widespread. At the end of Q3, more than 85,000 brick-and-mortar places would take payment via a bankcard, and up to 75% of terminals now operate with PayPass technology.

The process should get another push through a related government program that is meant to facilitate new POS-terminal installations.

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