Regional Features of Card Payments in Hungary

László Kajdi () and István Nemecskó ()
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László Kajdi: Magyar Nemzeti Bank
István Nemecskó: Magyar Nemzeti Bank

Financial and Economic Review, 2020, vol. 19, issue 1, 65-89

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.

Keywords: payments; card acceptance; regional features (search for similar items in EconPapers)
JEL-codes: D12 G20 R11 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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