Payment cards are used far less frequently in central and eastern Europe (CEE) than western Europe, where they are used on average twice as often as those in CEE. However, new research from RBR indicates that there is significant potential for an increase in card usage across CEE.

Consumers in CEE are still relatively traditional when it comes to credit and debit cards – cards being used exclusively for cash withdrawals is still a common occurrence. In Kazakhstan, which has the lowest card usage in the region, credit cards are more commonly used for the withdrawal of cash loans, rather than as a payment instrument.

However the growth of contactless payments is changing those habits, increasing the awareness of the benefits of card usage in the region, RBR argued. Despite a much smaller proportion of NFC-enabled cards in CEE than western Europe, contactless cards are establishing themselves in certain markets including the Czech Republic, Poland and Slovakia.

The study shows that the two European regions differ widely in terms of the value of card purchases; in 2014, a card transaction amounted to €51 on average in western Europe – twice the equivalent figure in CEE. The average credit card payment is also much lower in CEE, partly due to the different cost of living in the two regions, and because CEE consumers have been encouraged to use their credit cards for more everyday payments.

Consumers across Europe continue to show a preference for cash, but the report suggests that habits are changing, and that with the growing popularity of contactless, payment card usage will continue to grow.

Daniel Dawson, who led the RBR research project, said: “Debit cards are where we forecast the most growth in card usage, with a growing share of consumers owning at least one debit card, and an increasing likelihood that they will use these cards at the point of sale.”

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